Alliant Credit Union trades $64.5 million of recreational vehicle loans in 2020 primarily with credit union partners
CHICAGO, IL (January 19, 2021) — Alliant Credit Union sold $64.5 million of recreational vehicle (RV) loans to credit union partners in 2020. The sales helped provide other financial institutions the opportunity to gain access to a high-performing asset class while furthering Alliant’s lending capacity. The sales averaged $9 million per pool across seven transactions.
“As an asset class, RV loans presently outperform auto on a risk adjusted return basis, yet many credit unions are not positioned to offer this type of financing,” said Charles Krawitz, Vice President of Commercial Real Estate Lending and Loan Trading at Alliant Credit Union. “Through loan sales, we can generate non-interest income while providing attractive loan participations to other credit unions. It is a win-win.”
The rising popularity of RV travel represents a growing opportunity for credit unions. The RV Industry Association projects RV shipments will climb nearly 20% in 2021, eclipsing 500,000 units.
Alliant began financing RVs for members in 2008, and in 2013 expanded into indirect channels focusing on larger franchise dealerships. Alliant’s RV loan portfolio currently stands at approximately $1.3 billion with over $580 million originated in 2020 alone. The organization continues to look for opportunities to sell loans to other credit unions, and will offer pools of loans starting at $5 million to credit unions that have an appetite for an ongoing partnership.
“First Peoples Community Federal Credit Union (FPCFCU) has been pleased to partner with Alliant Credit Union for RV participations over the last several years. Alliant has made this process very simple for us,” said Lynn Stuart, VP/Credit Manager at FPCFCU. “We have been impressed with their close attention to detail, due diligence and efficiency. From the moment we express an interest in a participation, we can receive a thorough proposal and be wrapped up in just a matter of days. We look forward to a continued relationship with Alliant in years to come.”
In addition to RV loans, Alliant Credit Union sold indirect auto, commercial and personal term loans to other credit unions in 2020.
About Alliant Credit Union (IL)
Alliant Credit Union is a not-for-profit financial cooperative with more than 850,000 members and nearly $19 billion in assets. Alliant was named one of CNBC's Top Credit Unions for 2023 and one of Money.com's Best Banks for America. Headquartered in Chicago and founded in 1935, Alliant is the largest credit union in Illinois and one of the largest credit unions in the United States. As an all-digital credit union, Alliant's mission is to provide members with a tech-forward banking experience coupled with consistent, superior financial value while simplifying and enabling how people save, borrow and pay.
