As second quarter trends emerge, the data continues to show that
the quarter was a successful one for auto lending. Among First Look
credit unions, auto loans grew an impressive 3.98% this past quarter.
The table below was developed using preliminary data from Callahan
& Associate's First Look program and represents the top ten
credit unions in auto loan growth over the three-month period. These
credit unions experienced stronger loan growth without sacrificing
loan quality: the delinquency ratio, though slightly higher than
the average First Look credit union, is still quite respectable.
What has helped these credit unions grow their auto loan portfolio?
Notice that of these top 10 credit unions, 9 offer indirect lending
programs. The indirect loans granted year-to-date comprise a large
percentage of the total loans originated year-to-date. In fact,
almost one-half of total loan originations were from indirect lending.
Compare this with the average First Look credit union whose indirect
lending program accounts for approximately ten percent of total