WASHINGTON–Credit unions in the United States have surpassed the $2 trillion in assets threshold for the first time. It required 106 years for credit unions to hit the $1 trillion in assets threshold in 2015; and then just six years to add another $1 trillion.
According to Callahan & Associates, credit union industry assets grew 13.2% year-over-year as of June 30, moving past $2 trillion in the process. The company released the numbers as part of its second-quarter 2021 Trendwatch webinar.
Among the other notable data points highlighted in the webinar:
- Total year-to-date loan originations increased by more than 20% in dollar terms over each of the past two years.
- Credit unions originated 22.5 million loans for $388.4 billion in the first half of 2021, including a record $206.7 billion in the second quarter. “As recently as 2014, the credit union industry had never collectively generated $388.4 billion in loan volume throughout a full calendar year, let alone over six months,” Callahan’s said.
- While first mortgages drove loan originations over the first six months of last year, consumer lending, “consisting predominantly of auto loans and revolving credit, is surging in the first half of 2021, outpacing first mortgage origination growth over the same period,” according to Callahan’s. The company added that although the mortgage market remains hot in the low-interest-rate environment, “the rebound of consumer lending is a hopeful sign for a recovering economy.”
- Strong origination performance is starting to convert to balance sheet growth, as outstanding loan balances expanded over the second quarter across all major loan products, Callahan’s said.
Additional Data Points
Additional data points released by Callahan’s includes:
- A total of 5.1 million Americans joined a credit union in the past 12 months, as membership expanded 4.1% year-over-year to reach a total of 128.8 million.
- Members have also turned to credit unions to help them save. Total share balances increased $228.6 billion (15.2%) over the past year. “Notably, member checking account balances have jumped 32% since last June as more than six in 10 members have checking accounts at their credit union today,” Callahan’s said. “Millions of American consumers (and growing) continue to turn to credit unions as their trusted primary financial institution.”
Weathering the Storm
“Credit unions continue to provide a growing proportion of the American public with responsible and timely financial products and services,” said Jon Jeffreys, president and CEO of Callahan & Associates. “The challenges of the resurging pandemic lay before all of us, but the experience gained so far since COVID-19 began and the century-long foundation on which the member-owned financial cooperative rests give me confidence that together, the movement can again help millions of members weather the storm.”