FirstLook 2Q: Lending Improvements

Credit unions reporting second quarter financials are showing loan growth.


Slide 1: Lending is a concern for most credit unions. Second quarter data on more than 3,200 credit unions that Callahan & Associates has so far analzyed show that annual loan growth has increased as of June 30, which is a third consecutive quarterly gain. These credit unions posted year-over-year growth in outstanding loan balances of 40 basis points in the second quarter after noting a 0.03% decline in annual loan growth as of March 31.

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Slide 2: These credit unions posted loan originations of $39.8 billion in the second quarter, up from the $39.2 billion the previous quarter. Second quarter originations are up 4.2% from originations granted in the second quarter of 2010. 

Slide 3: First mortgage originations show continued strength and consumer loan volume picked up slightly. Consumer loans accounted for 59.5% of total loan originations through June 30, 2011 for this FirstLook group of credit unions. Consumer loans originated YTD increased 13.7% over 2010 figures for the same period.

Slide 4: While the origination detail for consumer loans isn’t reported, key areas of the loan portfolio outstanding grew, including used auto loans, first mortgages, and credit cards. As with recent quarters, new auto loans and other real estate loans declined. However, new auto loans, down 13.8% in March, recovered slightly in the second quarter with balances down 11.6% year over year.

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