ARLINGTON, Va.—Credit unions have seen stronger loan growth than banks, although the margin is narrowing, according to NAFCU’s fourth-quarter CU Industry Trends report.
The report also noted credit unions’ increase in small business lending continues to grow and currently outpaces banks. How the coronavirus outbreak’s effect on the economy and on those numbers will be seen in future data.
“Fourth quarter data show the credit union industry is in a strong position, with high levels of capital and solid loan performance,” said NAFCU Chief Economist and Vice President of Research Curt Long. “During the quarter credit unions saw increased refinance activity and share growth, and both of those trends will likely continue as interest rates remain low and uncertainty drives growth in share and deposit accounts.”
Other Data
Other key data from the trends report:
- ROA remains mostly unchanged except for a rise in the Eastern region
- Share growth continues to rise and now exceeds loan growth
- Florida, Idaho, Nevada, Utah and Wyoming saw the highest member growth
- Nevada saw the highest ROA