Credit unions bulk up in commercial lending and home equity, along with CDs
Growth at federally insured credit unions continues to come from areas such as business loans, auto lending, credit cards, home equity and payday loan alternatives. Unlike banks, credit unions managed to grow deposits in 2022, adding $50 billion worth of CDs. However, NCUA officials urge caution.
Credit unions went on a lending spree in 2022, bulking up on auto, credit cards, home equity and payday alternative loans. They also fattened their commercial lending portfolios significantly, a frequent point of contention for banks.
The growth among federally insured credit unions, as shown in the National Credit Union Administration’s yearend report, far outshines their banking counterparts.
Commercial loans outstanding at the credit unions surged by 24.5% in 2022 — which is more than double the growth rate reported by banks.
Total loans jumped 20% for credit unions in the same period. By comparison, banks had an 8.7% increase in overall loans and leases outstanding.
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