How To Grow Loan Balances

Five can't-miss data points featured this week on CreditUnions.com.

 
 

Total loans topped $870 billion in fourth quarter 2016 after credit unions posted a 10.2% year-over-year growth rate — the third consecutive year of sustained double-digit growth.

Clearly, loans continue to play a large role on the credit union balance sheet. That's why this week on CreditUnions.com we feature strategies and success stories for different kinds of loans, from mortgages and autos to private student loans.

Here are five data points you need to know:

54.8%

The credit union auto loan market share by state varies widely across the country. For fourth quarter 2016, Utah captured an industry high of 54.8%, whereas New Jersey came in with an industry low of 2.9%. The weighted national average as of year-end 2016 was 18%.

So, what’s happening in the Beehive State? Learn how three credit unions divide and conquer the Utah auto market in "The Buzz Around Auto Lending In The Beehive State."

66th

Based on fourth quarter data, USC Credit Union has outperformed the broader credit union industry in growing its private student lending.

The 68,589-member cooperative grew that portfolio by 59.24% year-over-year in 4Q 2016. For all 708 credit unions that offer private student lending, the fourth quarter growth rate was 10.34%, and USCCU was 66th on that list, placing it in the top 10% of its class.

Learn more about this growth and its impact on delinquency in "USC Credit Union Grows Student Lending."

$20 Million

In first quarter 2016, Credit Union of Southern California averaged $4.6 million in consumer loans per month. But that was in a decentralized lending environment.

Once the credit union adopted a centralized model in the summer of 2016, consumer loans took off. The credit union booked $9.1 million in October 2016, $10.6 million in November, and $13.4 million in December. And according to the credit union, by first quarter 2018 they'd like to average $20 a month.

To see how the credit union implemented its new lending environment, check out "Centralized Lending Leads To Triple The Consumer Loans."

79.5%

The average nationwide loan-to-share ratio in fourth quarter 2016 hit 79.5%, up more than two percentage points year-over-year. This is the highest level since the great recession and is a positive sign for consumer demand and efficient balance sheet management.

Learn more about how credit union lenders wrapped up the year in "A Look At Credit Union Lending In 2016."

$447.2 Million

On Feb. 1, 2014, State Employees Credit Union of Maryland launched a promotional offer for its home equity line of credit program that sounds too good to be true: an introductory offer of 0.99% for the first 12 months.

Three years later, though the rate is now 1.49%, the offer still helps generate and hold on to HELOC activity at the Maryland credit union.

Learn more about how targeted promotions help the credit union generate enough volume to make up for the smaller margin on home equity lines in "How To Score With HELOCs." 

Happy Reading!

 
 

March 6, 2017


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