ONTARIO, Calif.–Credit unions in California and Nevada are seeing an “abundance” of loan volume from mortgages and business loans, but like the rest of the country are also seeing even more abundance with deposits, according to new data from the California and Nevada Credit Union Leagues.
Among the trends and other data points to be found among the 206 CUs in the two states, according to the leagues: membership growth is being driven in part by homeowners and vehicle owners looking to refinance their loans as interest rates have declined, as well as by small business owners who scrambled to get Paycheck Protection Program (PPP) loans.
The Data Points
Second quarter data from 2020 also showed:
- The fact that used auto loan growth either held steady or did not decline as much as other loan categories (depending on the region) also helped bolster or buffer total/headline lending trends, the leagues said. “Used vehicle prices relative to new autos, combined with very low interest rates, are making pre-owned cars and trucks relatively much more attractive during the economic slowdown.”
- Three loan categories declined significantly as the pandemic-forced government shutdown halted economic activity: new autos, credit cards, and HELOC/home equity loans (combined category).
- Total credit union deposits in California and Nevada were already hitting record highs for many consecutive quarters coming out of late 2019 and early 2020 due to new members joining credit unions (not from consumers increasing their savings), the leagues said.
- Checking and savings accounts mostly saw the highest growth rates.