Record Loan Originations Demonstrate Credit Unions' Financial Responsiveness

While the credit crisis continues to dominate the economic news, the country’s 7,848 credit unions turned in a record-breaking performance in new loans granted in the first half of 2009.

 
 

WASHINGTON, DC (August 28, 2009)

While the credit crisis continues to dominate the economic news, the country's 7,848 credit unions turned in a record-breaking performance in new loans granted in the first half of 2009.

In the first two quarters, $144.2 billion in loans were extended to members. This volume was 7.5 percent, or more than $10 billion, greater than the first six months of 2008.

“Credit granting is the core of credit unions' role. In this stressed economy, what might seem routine is in fact extraordinary performance,” said Jay Johnson, executive vice president at Callahan & Associates.

The total number of loans closed was 9,585,368. The average loan granted was $15,048. 

“These loans help members in communities across America, provide the primary source of credit union earnings, and demonstrate the resilience of cooperatives,” said Johnson. “Credit unions' market share increased in every lending category. In real estate first mortgages for example, this share has more than doubled in the last 24 months to 5.2% at mid-year 2009.”

Members also brought $58.1 billion in new share deposits to credit unions, a growth rate of 8.4% over the past 12 months. This is the largest increase this decade.

Credit unions also maintained their status as the best-capitalized financial institutions with a net worth ratio of 10%. Their overall delinquency was 1.59% on loans 60 days or more past due compared with a rate of 4.35% for FDIC-insured institutions on loans more than 90 days past due.

Credit unions have been “punching above their weight class” for the last two years. While other lenders have cut back, credit unions have stepped in, filling voids in auto lending, credit cards, first mortgages, home equity lines, and student lending.

“The credit union cooperative financial system works,” said Johnson, “It has been a source of 'economic stimulus' for members throughout this crisis.”

To view the full press reease on credit union 2Q performance, click here.

 

 

 

Aug. 28, 2009


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