Leaders In Outstanding Participation Loans

Many credit unions are buying loans to enhance their portfolios.

 
 

The past couple of years have offered a sluggish environment for lending, and although loan originations picked up through the end of the year, outstanding loan growth for the credit union industry remains in the negative. To counteract this environment, many credit unions are buying loans from other credit unions to enhance their own portfolios. Through loan participation, credit unions with a strong lending portfolio can assist credit unions that experience difficulties putting loans on their books. Loan participation also allows credit unions that specialize in a certain type of loan to share the loan and disburse the risk. It’s a true cooperative strategy.

Nationally, credit unions hold $10.4 billion in outstanding participation loans. Approximately 16.5% of credit unions have at least $1 outstanding in participation loans, but only 205 (or 2.7%) hold more than $10 million. The 15 institutions below hold $2.8 billion, which is a quarter of the total industry holdings.

Leaders In Outstanding Participation Loans

Data as of September 30, 2010
Rk Credit Union St Total Outstanding Participation Loans ($) 12-Mo. Growth of Participation Loans Outstanding Outstanding Participation Loans as a % of Total Loans Total $ Loans Outstanding
1 Delta Community GA $497,868,373 69.6% 21.1% $2,363,816,215
2 Patelco CA $365,918,291 -9.6% 17.6% $2,079,410,851
3 Atlanta Postal GA $257,899,311 -1.2%

30.6%

$841,753,995
4 American Airlines TX $208,235,214 23.3% 8.2% $2,540,089,305
5 Premier America CA $183,248,316 -3.2% 20.4% $898,298,806
6 Georgia's Own GA $180,771,056 33.1% 20.6% $879,418,256
7 Texans TX $152,325,315 -37.1% 15.8%

$967,134,316

8 America First UT $145,312,935 -5.6% 3.9% $3,727,111,944
9 SchoolsFirst CA $126,783,249 -5.8% 3.1% $4,128,460,760
10 Western CA $117,246,630 -11.5% 11.8% $989,598,345
11 Visions NY $115,907,613 -27.7% 7.9% $1,467,361,222
12 Royal WI $110,034,086 26.3% 10.2% $1,074,823,961
13 California Coast CA $109,556,388 1.1% 10.1% $1,089,547,824
14 Chartway VA $101,075,197 36.6% 10.9% $928,990,845
15 Langley VA $95,723,892 -6.7% 15.0% $636,922,025
Source: Callahan & Associates' Peer-to-Peer Software
 

 

 

Jan. 17, 2011


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