Member Business Lending Brings Higher Growth, Balances in Tough Lending Market

As first mortgages and refinancings flooded into credit unions over the past year, some other credit union loan products fell behind. New auto loan balances actually fell slightly over the last 12 months. And while some credit unions did sell their portfolios, overall credit card balances rose only 1%.

 
 

As first mortgages and refinancings flooded into credit unions over the past year, some other credit union loan products fell behind. New auto loan balances actually fell slightly over the last 12 months. And while some credit unions did sell their portfolios, overall credit card balances rose only 1%.

Member business lending has been the growth king for credit unions since last June, with balances rising over 26% to $8.3 billion. As of June 30, over 1,630 credit unions reported member business loans on the books, with 228 credit unions starting programs over the past year. These credit unions had, on average, $118 million in assets, a 1.14% ROA, and $5 million in MBLs outstanding. The higher balances ($111K on average), greater community visibility, and improved relationships are all helping these credit unions increase their returns and boost their member value.

 

 

 

Sept. 22, 2003


Comments

 
 
 
  • Article is to the point but $249 for a web seminar?
    Anonymous