3 Things To Know About Loan Originations In 2015

Year-end data shows credit unions lent $1.1 billion per day on average in 2015. But, there's more.

 
 

Callahan's FirstLook data, representing 6,000 credit unions and 98% of industry assets, points toward another record-breaking quarter and remarkable year for the credit union industry.

Membership, loan balances, and share balances posted all-time highs. As of Dec. 31, 2015, credit unions served more than 104 million members and held $797 billion in loans. Loan originations soared 15.9% annually.

Here are three things to know about loan originations in 2015.

No. 1: Credit unions lent more than $410 billion to members in 2015, up 15.9% annually.

Consumer loans comprised 58.3% of the loan origination portfolio. That's down 3.9 percentage points from 62.2% in December 2014. First mortgage originations posted the highest growth of all loan categories, up 33.2% annually. They comprised 30.6% of all loans originated throughout the year.

YEAR-TO-DATE LOAN ORIGINATIONS
For FirstLook credit unions | Data as of 12.31.15
© Callahan & Associates | www.creditunions.com

Loan_Originations_4Q_2015

Source: Peer-to-Peer Analytics by Callahan & Associates

No. 2: By number, consumer loans accounted for 94% of loan originations in 2015.

Credit unions originated more than 28.7 million loans in 2015 -- 27.2 million were consumer loans. Three of the four loan categories posted an increase in number of loans originated year-over-year. The fourth category, member business loans, posted a 4.4% decrease in number of loans originated since December 2014; however, MBL balances were up 13.3% annually.

YEAR-TO-DATE NUMBER OF LOAN ORIGINATIONS BY TYPE
For FirstLook credit unions | Data as of 12.31.15
© Callahan & Associates | www.creditunions.com
 Number_of_Loans_Originated_By_Type_4Q_2015

Source: Peer-to-Peer Analytics by Callahan & Associates

No. 3: Yearly growth in the number of loans originated topped 20% for four states.

Credit unions in the District of Columbia posted impressive growth, expanding the number of loans originated by 49.3% in 2015.

LEADERS IN GROWTH OF LOAN NUMBERS ORIGINATED
For FirstLook credit unions | Data as of 12.31.15
© Callahan & Associates | www.creditunions.com

State Total Number Of Originations For 2015
(in thousands)
Total Number Of Originations For 2014
(in thousands)
Growth
DC 99,215 66,468 49.3%
FL 2,916,210 2,118,772 37.6%
HI 130,666 102,930 27.0%
NJ 215,216 172,312 24.9%
RI 45,022 37,564 19.9%
MA 172,258 145,992 18.0%
WA 756,603 642,107 17.8%
MN 449,247 386,126 16.4%
CO 382,567 332,060 15.2%
VA 4,188,245 3,685,947 13.6%

Source: Peer-to-Peer Analytics by Callahan & Associates

No. 4: Yearly growth in loan origination balances topped 20% for nine states.

Nevada credit unions outpaced all other states in origination growth, increasing the dollar amount of loans originated by 39.2% compared to December 2014.

LEADERS IN GROWTH OF LOAN BALANCES ORIGINATED
For FirstLook credit unions | Data as of 12.31.15
© Callahan & Associates | www.creditunions.com

State Total Origination Balances For 2015 (in thousands) Total Origination Balances For 2014 (in thousands) Growth
NV $1,321,707 $949,765 39.2%
HI $2,047,767 $1,534,211 33.5%
CO $8,987,803 $6,747,615 33.2%
RI $1,522,011 $1,157,533 31.5%
MD $6,691,368 $5,185,355 29.0%
MN $6,329,227 $5,006,964 26.4%
CT $2,442,427 $1,946,380 25.5%
AL $4,603,732 $3,679,894 25.1%
ID $3,982,429 $3,186,574 25.0%
MA $9,850,896 $7,941,384 24.0%

Source: Peer-to-Peer Analytics by Callahan & Associates