Credit unions making more member business loans

Credit unions have been making a push to offer more member business loans (MBL) to members. Callahan & Associates found that 34.4 percent of U.S. credit unions offer MBLs, as of September 2015. There are six credit unions from Alabama and Florida that are ranked in the top 100 of credit unions seeing major growth […]

Credit unions have been making a push to offer more member business loans (MBL) to members. Callahan & Associates found that 34.4 percent of U.S. credit unions offer MBLs, as of September 2015. There are six credit unions from Alabama and Florida that are ranked in the top 100 of credit unions seeing major growth with their MBL program. Suncoast CU in Tampa is the highest ranked credit union from Alabama and Florida. It has seen 115 percent growth in MBLs, year over year.

Total MBL outstanding balances topped $50.9 billion which is a 12.29 percent year-over-year increase from September 2014. Looking a little deeper into MBLs shows that  they are growing in size and popularity but still only account for 6.5 percent of the total industry loan portfolio.

“Credit unions participating in member business lending outperformed credit unions that do not offer member business loans across a variety of metrics, including return on assets (ROA), delinquency, and member and share growth” said Callahan Director of Industry Analysis Sam Taft. “The most notable difference is loan growth. Credit unions that participate in MBL expanded their total loan portfolio 11.8 percent annually, compared to 6.2 percent for credit unions that do not.”

Read more on Callahan’s website.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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