Credit union lending is booming. According to third quarter performance data, loan balances topped an all-time high of $779.7 billion as of Sept. 30, 2015. On Wednesday, Callahan & Associates hosted its quarterly Trendwatch webinar that covers performance trends, industry success stories, and areas of opportunity. Callahan bases its analysis on data it gathers through its FirstLook process, which to date includes 6,092 credit unions representing 99.95% of industry assets.
Many exciting trends have emerged during the analysis of third quarter data. For example, credit unions lent more than $1 billion every day during the past three months, and automotive lending continues to be a bright spot. Here are three reasons why.
1. Auto loan originations have totaled more than $33 billion in the past 12 months.
Auto loans added more than $33.6 billion to the overall credit union loan portfolio between September 2014 and September 2015. Total loans outstanding expanded 10.8% year-over-year.
12 MONTH GROWTH IN LOANS OUTSTANDING
For all FirstLook credit unions | Data as of 9.30.15
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
2. Auto market share is increasing.
Credit unions captured 16.4% of the auto market as of September 2015. That’s highest third quarter market share since September 2009, when it was 20.6%
CREDIT UNION YEAR-TO-DATE AUTO MARKET SHARE
For all FirstLook credit unions | Data as of 9.30.15
© Callahan & Associates | www.creditunions.com
Source: AutoCount Data from Experian Automotive; Peer-to-Peer Analytics by Callahan & Associates
3. Credit union auto lending is strong across the country.
Credit unions captured more than 25% of the auto market in eight states.
LEADERS IN CREDIT UNION AUTO MAKET SHARE
For all FirstLook credit unions | Data as of 9.30.15
© Callahan & Associates | www.creditunions.com
| State | Credit Union Market Share 14 | Credit Union Market Share 15 | Growth In Market Share |
|---|---|---|---|
| Utah | 52.5% | 49.9% | 2.6% |
| Idaho | 47.7% | 46.9% | 0.8% |
| Oregon | 41.7% | 41.7% | 0.0% |
| Washington | 38.8% | 38.8% | 0.0% |
| Colorado | 34.4% | 34.9% | -0.5% |
| New Mexico | 31.3% | 29.7% | 1.6% |
| Iowa | 31.1% | 29.5% | 1.6% |
| New Hampshire | 28.9% | 28.7% | 0.2% |
| Maine | 24.2% | 23.6% | 0.6% |
| Kansas | 23.7% | 23.9% | -0.2% |
Source: AutoCount Data from Experian Automotive; Peer-to-Peer Analytics by Callahan & Associates
4. Credit unions are partnering with auto dealers.
For the second consecutive quarter, indirect lending balances outstripped direct balances. Indirect lending expanded 21.7% annually. The $123.4 billion in indirect balances as of September 2015 comprise 51.3% of auto loans and 17.0% of total loans.
INDIRECT LENDING AS A PERCENTAGE OF TOTAL AUTO LOANS
For all FirstLook credit unions | Data as of 9.30.15
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
Third Quarter Analysis Is A Click Away
Want more performance analysis weeks before the official NCUA drop of 5300 Call Report data? Check out Callahan’s FirstLook coverage on CreditUnions.com.