With more than 5,900 credit unions reporting third quarter data, Callahan Associates projects the credit union industry will set new records in member business lending.
Thanks to growing demand, third quarter 2016 member business lending reached $58.2 billion across the industry, the highest balance yet. Average member business loan balances per credit union topped $9.8 million, setting another new record while expanding 14.5% from third quarter 2015.
Approximately 65% of all credit unions were doing business lending as of September. Although healthy growth allows for diversification, lenders should continue to take portfolio quality into consideration. For instance, MBL delinquency reached 1.49%. This remains below previous highs in 2013 but is expanding quarter-over-quarter.
How Do You Compare?
Want to know where your credit union ranks in terms of member business lending against local and national peers of a similar size? Contact Callahan to find out.
The Northeast region posted particularly noticeable MBL activity in the third quarter. New York credit unions had the largest representation with three making the list of the 10 largest portfolios. Additionally, the Midwest was well represented with Indiana, Wisconsin, and Iowa credit unions joining the ranks. West Coast leaders with heavy business lending portfolios included credit unions from Utah and Washington state.
LEADERS IN MEMBER BUSINESS LENDING
FOR U.S. CREDIT UNIONS* | DATA AS OF 09.30.16
| Credit Union | State | Member Business Loans (MBL) | |
|---|---|---|---|
| 1 | Melrose | NY | $1,556,378,953 |
| 2 | Digital | MA | $824,225,819 |
| 3 | Beacon | IN | $762,118,251 |
| 4 | BECU | WA | $753,096,907 |
| 5 | Bethpage | NY | $740,302,386 |
| 6 | University of Iowa Community | IA | $696,896,862 |
| 7 | Royal | WI | $695,404,587 |
| 8 | Kinecta | CA | $629,821,449 |
| 9 | Progressive | NY | $594,723,921 |
| 10 | Mountain America | UT | $556,459,247 |
Source: Peer-to-Peer Analytics by Callahan Associates.
*For 5,931 credit unions