Credit union loan balances were up 10 percent to $834.3 billion in the second quarter of 2016, according to a Callahan & Associates’ analysis of 5,959 institutions, setting a record for credit unions.
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, the study revealed. First mortgages grew by 9.8 percent annually and account for 37.6 percent of total loan growth, Callahan reported. 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 totalled $62.6 billion, a 1.7 percent annual increase over June, 2015 and the most loaned out since 2013.
Used auto balances increased 13.4 percent year-over-year, accounting for 25.8 percent of total loan growth over 2015. 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’s report revealed. Read the full report at CUToday.