Lending, Lending, Everywhere

This week, CreditUnions.com drills down into the loan portfolio and explores the ways different credit unions are growing loans.

Starting in second quarter 2014, the credit union industry has experienced eight consecutive quarters of double-digit loan growth. This week, CreditUnions.com drills down into that portfolio and explores the ways different credit unions are growing loans.

Looking back just four years, Langley Federal Credit Union was an unrecognizable institution to the one that exists today. Loan and membership growth were negative, and the institution’s loan-to-share ratio was nearly 30% lower than the peer average of credit unions with more than $1 billion in assets. Today, things are different. Both loan and membership growth far outpace peer average, and the credit union’s loan-to-share ratio sits comfortably in the low 90% range.

To see how the Virginia credit union has posted 13 consecutive quarters of loan growth greater than 19%, read Langley FCU’s Road Map To Loan Growth by Callahan Associate Editor Erik Payne.

The demand for member business loans and services is growing, and offering MBL options are one way to remain competitive in the financial industry. Learn more about credit union business lending in Callahan Senior Industry Analyst Michelle Parker’s Graphic Of The Week, The Story Behind The Business Boom.

Construction lending at Directions Credit Unionisn’t a big business of a $230 million real estate lending portfolio the credit union originated $29 million in construction loans in 2015 and currently has $17 million worth of these loans in progress but it is a growing business, one that meets a member need.

The credit union has increased its construction portfolio nearly 50% year-over-year. In How To Lay The Foundation For Construction Loans, Erik Payne shows how the Ohio credit union does it.

CAHP Credit Union’was there when the economic CHiPs were down for its peace officer members across the Golden State, and the membership has responded in kind.

CAHPCU was founded by a group of California Highway Patrol officers in 1969, several years before the television show gave them fame and 40 years before the Great Recession gave them fits.

When hard times hit, CAHPCU did not pull back from lending. Instead, it increased its flexibility and relied more heavily on analytics to make decisions. It also doubled down on developing personal relationships with its far-flung membership. Learn more about what the credit union did in A Strategy To Post Arresting Loan Growth, by Callahan Senior Writer Marc Rapport.’

Credit union lending reached a record high of $796.5 billion in 2015 as cooperatives posted year-over-year growth in every major loan category. See a greater breakdown of that figure in Callahan Industry Analyst Stephanie Clark’s Lending Highlights From Fourth Quarter 2015.

Happy Reading!

May 9, 2016

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