WASHINGTON–Should the level of lending at credit unions in 2018 continue through the end of the year it will mark the fifth consecutive year of double-digit loan growth, something not seen since the 1980s.
Mike Schenck, chief economist with CUNA, said the group’s mid-year Monthly Estimates Report shows the strong loan numbers are being driven by three areas:
- New auto loans, up 14% year over year
- Used auto loans, up 11% YOY
- Mortgages, up 11% YOY
“These 12-month increases are faster than what we reported in 2017,” said Schenk.
As CUToday.info reported earlier, Schenk noted total credit union loan balances surpassed the $1 trillion threshold in April and stood at $1.03 trillion as of mid-year.
“The credit union value proposition is obvious,” said Schenk. “Overall, data show CUs added nearly 460,000 members in June, a 4.8% annualized increase. Year-over-year, membership is up a little over 4%, which would match 2017.
There is one caveat in all the good trend news: Schenk said CUNA is projecting indirect auto loan payoffs will make it difficult to maintain growth in that category. “Expect solid growth, but a little bit of a slowdown over 2017 in auto.”
CUNA’s estimates are based on reporting by data reported by nearly 500 credit unions and then weighted to reflect the overall CU community.