Credit Unions Reporting Record Loan Volume

The first wave of credit unions reporting fourth quarter financials reveals that the pace of loan originations has picked up over 2010 levels.


The initial wave of credit unions’ fourth quarter filings show credit unions originating $120.5 billion in loans throughout 2011, a 5.1% increase over 2010 levels for the same 3,104 credit unions.

Consumer and member business loans were the strongest growth areas of these credit unions’ loan originations, according to Callahan & Associates’ FirstLook data. Robust growth in these categories, as well as steady first mortgage originations, fueled positive outstanding loan balance growth of 1.59% for 2011, despite selling $17.6 billion in first mortgages during the year.

Member business loan originations saw the biggest percentage growth over 2010 numbers, with 13.0% growth during the year. But consumer loans had a much larger amount of dollar growth of $7.2 billion and also posted solid 11.3% year-over-year growth.

Quarterly Loan Origination By Type
For 3,104 FirstLook Credit Unions | Data as of December 31, 2011
Callahan & Associates' Quarterly Loan Origination By Type
Source: Callahan & Associates' FirstLook.

Quarterly overall loan origination volume was at its highest in 2011 in the fourth quarter at these credit unions, which originated $33.2 billion in loans that quarter, up from the $32.0 billion in the same quarter in 2010.

First mortgage originations were much stronger in the second half of the year, with fixed-rate mortgage originations making up over 76% of all first mortgage originations as members took advantage of the historically low-rate environment. Credit unions reported the second-highest dollar volume of mortgage originations on record in the fourth quarter of 2011, and the highest dollar volume of mortgage of all the fourth quarters on record.




Jan. 30, 2012


  • I am curious as to the percentage of Consumer loans for this growth was from the Credit Unions 1 Billion in assets and larger?
    Jim Crowley