Press

Credit Unions ramp up lending to member-owners in second quarter

WASHINGTON, DC (August 19, 2019) — Credit unions grew both sides of the balance sheet in the second quarter of 2019, reflecting investments in member value and experience.

These trends and more were highlighted in last week’s Trendwatch webinar, a quarterly offering from Callahan & Associates that highlights industry performance, shares credit union success stories, and identifies areas of opportunity.

Callahan analysts identified three trends from second quarter credit union performance data:

Interest rate margins expanded across the industry, allowing credit unions to further invest in delivering an enhanced member experience.
Credit unions rewarded savers with competitive rates; as such, share certificate balances increased almost $50 billion year-over-year, the highest annual growth ever.
The loan-to-share ratio rose to 83.3% as consumers increasingly selected credit unions as their preferred lender for consumer and mortgage loans.

“Mid-year results show that members continue to respond to credit union value,” said Jay Johnson, chief collaboration officer at Callahan & Associates. “Lending activity to members jumped 22% from the first quarter and credit unions rewarded savers with higher rates. These results, combined with recent interest rate movements, indicate the industry is well positioned to help members even more in the second half of 2019.”

Share growth over the past 12 months increased 6.1%, with share certificates accounting for 62% of that accelerated growth.

This quarter’s Trendwatch webinar also featured a presentation from Amy Sink of Interra Credit Union. The CEO of the Indiana cooperative talked about Interra’s focus on staying connected to its local market and the opportunity she sees in the credit union’s ability to help the community grow.

Every quarter, Callahan leaders rely on the company’s propriety data analytics tool, Peer-to-Peer, to analyze credit union performance data weeks before the official release from the industry regulator. To learn what Peer can do for you, click here.

To learn more about second quarter data trends, contact Callahan at support@callahan.com or visit CreditUnions.com for commentary and industry insights.

About Callahan & Associates

For more than 35 years, Callahan & Associates has helped credit union leaders identify strategic growth opportunities that increase member value. We create meaningful dialogue, connect people, provide counsel, and help organizations thrive through our competitive analytics, best-practice media, leadership consulting, and collaborative ventures. Our clients grow assets, members, shares, and loans faster than industry averages. Learn more at www.callahan.com.