Auto Lending Picks up in 2nd Quarter

An early sample of credit unions report that loan balances grew more than share balances in the second quarter of 2003, giving credit unions a much-needed boost to their loan-to-share ratio. These 457 credit unions that have reported to Callahan & Associates' First Look program total $168.9 billion in assets, approximately 28% of the entire industry.

 
 

An early sample of credit unions report that loan balances grew more than share balances in the second quarter of 2003, giving credit unions a much-needed boost to their loan-to-share ratio. These 457 credit unions that have reported to Callahan & Associates' First Look program total $168.9 billion in assets, approximately 28% of the entire industry.

Winter months are usually saving months, and credit unions look to the spring and summer months to expand their loan portfolios. The First Look participants followed that trend, as first quarter share balance growth of 5.5% eased to 2.4% during the next three months. On the other side of the balance sheet, loans grew only 1.5% in the first three months, but followed that with 2.9% growth in the second quarter.

Impressively, auto lending led the growth. Auto loans grew 3.8% during the second quarter, and additional auto loan balances accounted for 47.4% of total portfolio growth. The table below displays key ratios for the First Look participants.

 

 

 

July 28, 2003


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