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Iowa Credit Unions post strong loan growth for second quarter 2014

DES MOINES, IA (September 30, 2014) — Callahan & Associates released the Quarterly Performance Summary for the second quarter of 2014, which compares Iowa credit unions to credit unions nationally. According to the June 30, 2014 summary, credit unions in Iowa report strong financial performance, posting annual loan growth of 14.5 percent. This indicates a strengthening economy as members are spending more and their demand for consumer loans in gaining momentum. Notably, Iowa credit unions have more of their members borrowing from the credit unions than credit unions nationwide. As of June, auto loan penetration in Iowa increased 1.6 basis points to reach 24.4 percent well above the national average of 17.0 percent. Mortgage penetration is up 57 basis points to 7.8 percent, nearly twice the average mortgage penetration rate for credit unions nationwide.

Key Iowa credit union findings in the Callahan report include:

  • Total loans increased 14.5 percent to $8.6B, compared with a 9.7 percent increase nationwide.
  • Experienced 4.1 percent growth in share and deposits to $10.5B. Nationally, share and deposit accounts at credit unions grew 3.3 percent to $952.6B.
  • Total assets stand at $12.3B. This is a 5.89 percent increase over June 2013. Nationally, federally insured credit unions’ total assets stand at $1.1T. This is a 4.45 percent increase over second quarter 2013.
  • The ROA for second quarter 2014 stands at 1.06 percent. This reflects a 7 basis points increase from the second quarter of 2013.
  • Originated $1.3B in consumer loans for the first half of 2014, up $95.5M from the second quarter 2013. First mortgage originations declined 28.4 percent to $638.3M from $892M reported in June 2013. This decrease is less than the 37.7 percent decline nationally reported. The decline is due to higher mortgage rates resulting in significantly lower refinance activity and mortgage origination.
  • Iowa credit unions have a net charge-off ratio of .41 percent. Delinquency dropped 12 basis points to .80 percent. These ratios are below the average for national banks and credit unions.
  • Membership increased 1.4 percent to 1,027,467, adding more than 14,000 members in the last 12 months. Nationally, membership in federally insured credit unions grew 2.9 percent to more than 99.1M.
  • The average net interest margin (the difference between interest earned on loans and investments and interest paid on deposits) increased 14 basis points from June 30, 2013 to reach 2.99 through second quarter of 2014.This is 17 basis points higher than the national average of 2.82 percent.
  • Seven Iowa credit unions merged in the first half of 2014. Nationally, 257 credit unions have merged and/or dissolved over the same time period. Nationally, there are 6,560 credit unions and of those, 110 are domiciled in Iowa as of June 30, 2014.

“As the economy strengthens and consumer confidence builds, the demand for consumer loans continues to increase,” said Patrick S. Jury, CEO/President, Iowa Credit Union League. “Consumers are seeking out Iowa credit unions for their financing needs, and we stand ready to help them improve their financial lives.”

About the Iowa Credit Union League 
The Iowa Credit Union League is the trade association that represents the interests of Iowa’s credit unions and their more than one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information on ICUL and Iowa credit unions, visit www.IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at www.facebook.com/iowacreditunions.To learn more about credit unions, visit www.ASmarterChoice.org.

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