More than 5,500 credit unions representing nearly 94% of the industry’s total assets are reporting into Callahan & Associates’ FirstLook program. According to FirstLook credit unions, the industry’s loan portfolio has expanded 10.8% year-over-year to $780 billion as of September 2015. By comparison, the portfolio expanded 10.03% from third quarter 2013 to third quarter 2014 and 10.53% from first to second quarter 2015.
Strong growth in almost all loan categories underpinned this impressive performance. Notably, balances in first mortgage, used auto, new auto, MBL, and student lending posted double-digit growth over September 2014.
YEAR-OVER-YEAR BALANCE GROWTH FOR MAJOR LOAN CATEGORIES
For FirstLook credit unions | Data as of 09.30.15
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
In line with the accelerating growth in loans outstanding, credit unions originated the highest dollar amount ever. Total loan originations increased 18.2% year-over-year and topped $310 billion as of Sept. 30, 2015. Perhaps unsurprisingly, mortgage lending is leading the way. In anticipation of rising rates, members are locking in low rates for their home purchases. During the first nine months of the year, first mortgage originations surged 41.9% over the same period last year to total $96.1 billion. Year-to-date, other real estate originations and consumer loan originations also posted strong year-over-year growth of 15.0% and 9.7%, respectively.
Notably, this accelerating lending activity has not compromised asset quality. As of September 2015, the delinquency ratio was 0.77%; that’s down eight basis points from September 2014. The industry’s net charge-off ratio has also dropped three basis points to 0.46%.