6 Things To Know About Credit Union Lending Trends

In what areas of the loan portfolio are credit unions posting particularly stellar performance?


Jan. 25, 2016


  • Thanks for these charts. I have a question about the YTD 1st Mortgage numbers. Between 2014 and 2015, there was an apparent growth of 41%. However, between 2013 and 2014, there was an apparent drop of even more than that. Given charge offs were on a decline and mortgage penetration rates were stagnant, what do you think was the cause of this enormous decrease? If I'm reading it correctly, 2015 is just making back most of the losses from 2013, not actually gaining.
    Joe Winn
  • Joe thanks for your comment. A couple of things were at play which contributed to the relative decline in 2014 compared to 2013. The biggest factor was higher interest rates in 2014. The bulk of 2013's production was seen in the early portion of the year as rates bottomed out in May of that year. Additionally, there was no decline in market share between 13 and 14, so 2015 wasn't really as much about making up losses, but more increasing production from the relative pull-back in 2014.
    Sam Taft - Director of Industry Analysis
  • Not sure I understand the commentary following the first chart: "Outstanding loan balances have increased 10.7% since September 2016"
  • My oversight, that's a typo. It should read "since September 2011." I've corrected it. Thank you for commenting.
    Rebecca Wessler, Editor, CreditUnions.com
  • Is the auto loan growth tied specifically to Indirect? Do you have any stats excluding Indirect portfolios?
  • Hey Brenda, thanks for your question. Indirect lending is certainly fueling a significant portion of the growth of the credit union auto portfolio. While not all indirect lending is automotive lending, in general it is a good proxy to use for the general growth of that segment. If you look at direct automotive lending growth (netting out indirect loans), the portfolio expanded 8.4% year-over-year, while the indirect-only lending channel grew 21.5% over the same period.
    Sam Taft - Director of Industry Analysis