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First Mortgages, Used and New Auto Loans Drive CU Loan Balances
Monday, August 15, 2016 6:35 AM

Credit union loan balances topped $834.3 billion, a 10.7 percent annual increase, in the second quarter of 2016 according to Callahan & Associates’ analysis of 5,959 institutions reporting second quarter data. The increase in loan balances is primarily driven by first mortgages and used and new auto loans, accounting for 81.6 percent of loan growth over the past year. 

Loan Composition

First mortgages soared 9.8 percent annually and account for 37.6 percent of total loan growth. Credit unions now hold more than $340.7 billion in first mortgage loans, the highest-ever reported balance. In the first six months of 2016, originations total $62.6 billion, a 1.7 percent annual increase over the previous June and the most loaned out since 2013.

Used auto balances increase 13.4 percent year-over-year, accounting for 25.8 percent of total loan growth over the past year. Used auto loans comprise 61.8 percent of the auto loan portfolio and yield an average balance of $11,941.

New auto loans jumped 15.7 percent, adding $14.7 billion to the loan portfolio over the past 12 months. This accounts for 18.4 percent of total loan growth, increasing $20.7 billion year-over-year and adding 572,550 new auto loans to the portfolio.

Total loan balances broke the all-time record of $809 billion, set in the first quarter of 2016. This is the 17th consecutive quarter credit union lending has surpassed new heights.

Callahan & Associates is dedicated to helping the credit union industry thrive. Our team of experts provides leading research, analytics, networking and consulting solutions. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights, and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our 30-year history has enabled us to build an unparalleled knowledge transfer consortium which connects the industry’s best minds. To learn how you can join Callahan’s network, please visit callahan.com.