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Credit Unions Post 4.2% Loan Growth in the Third Quarter

Rising balances in cars, cards, and castles drives the loan portfolio higher.

WASHINGTON, D.C. — 5300 Call Report data shows credit unions posted their strongest ever loan performance through the first three quarters of 2012, according to Callahan & Associates’ FirstLook program. With more than 98% of industry assets accounted for, third quarter 2012 performance data shows credit unions posted 4.2% loan growth. At September 30, credit unions held nearly $600 million in members’ loans on their books.

Credit unions in nearly every state in the country posted positive loan growth. This is in contrast to only two years ago, when nearly half the country posted negative loan growth.

Rising balances in cars, cards, and castles drove the loan portfolio higher. Annual growth for used and new auto loans hit 8.7% and 6.5%, respectively. An increase in new car sales nationally coupled with members’ choice to more often finance new vehicles with their credit union helped credit unions sustain their new auto lending momentum in the second half of the year. Outstanding credit card balances increased 5.3% annually to $38.2 billion while first mortgages, with 7.0% annual growth, also played a strong role in the overall increase in loans.

Callahan’s FirstLook data set represents the most complete set of 3Q 2012 credit union industry data available to the public until the NCUA official release in December. Visit CreditUnions.com throughout November for the most recent analysis of key credit union trends and performance analysis.

Callahan & Associates is a Washington, DC-based firm that delivers in-depth analysis of credit union quarterly performance through its proprietary software and financial publications. As a financial consultant, it also offers strategic planning and investment management for credit unions. Visit www.callahan.com to learn more.

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