Fed shows credit unions still lead consumer loan growth

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Credit unions see ups and downs in consumer lending.

Credit unions increased their share of loans in March for credit cards and non-revolving loans, including automobiles, the Fed reported on Monday.

The Fed’s G-19 consumer lending report showed that credit unions sharply increased their share of consumer loans in March, with their portfolios growing twice as fast as banks over the past year. past year and continued to increase from February to March, when banks’ portfolios shrank. .

Consumer loans have become more important to lenders as mortgage repayments decline.

Credit unions rose sharply in their share of consumer loans in March, with their portfolios growing twice as fast as banks in the past year and continuing to increase from February to March, when portfolios banking have declined.

Credit unions held $ 432.4 billion in consumer debt as of March 31, up 11.8% from the previous year. Balances rose 1.4% from February to March, down from 0.2% a year earlier. The share of credit unions in total consumer loans was 11.3% in March, compared to 11.1% in February and 10.6% in March 2017.

Banks held $ 1.57 trillion in consumer debt as of March 31, up 5.7% from the previous year. The drop from February to March was 0.4%, which is a month’s decline from the previous year.

All lenders held $ 1.1 trillion in auto loans as of March 31, up 3.8% from the previous year.

The Fed reports auto loans every three months, but does not break this category down by type of lender. For credit unions, auto loans as reported by CUNA Mutual Group have averaged 94% of the Fed’s number for non-revolving credit union loans over the previous three months.

If this percentage was maintained for March, auto loans from credit unions stood at about $ 351.4 million as of March 31, or 31.4% of the US auto loan market. This is an increase from a share of 29% a year earlier and a share of 30.5% in December 2017.

Credit unions with large increases in auto loans included America First FCU, Riverdale, Utah ($ 10 billion in assets, 949,099 members), Randolph-Brooks FCU, San Antonio ($ 8.8 billion in assets , 747,638 members) and Suncoast CU, Tampa, Florida. ($ 9.1 billion in assets, 763,709 members). Appeal reports filed this month with the NCUA show:

  • America First FCU held $ 859 million in new car loans on March 31, up 24% from the previous year, while used car loans rose 23.5% to 3. $ 1 billion.
  • Suncoast CU’s new car loans increased 23.2% to $ 1 billion, while used cars rose 32.7% to $ 2 billion.
  • Randolph-Brooks FCU’s new car loans rose 20.5% to $ 1.1 billion, while used car loans rose 27.1% to $ 1.9 billion.

However, auto credit declined at Security Service FCU in San Antonio ($ 9.5 billion in assets, 765,305 members). Its new car loans fell 6% to $ 2.5 billion, while used car loans fell 4.2% to $ 2.6 billion.

Another component of non-revolving loans was the $ 1.5 trillion in public and private student loans held by all lenders on March 31, up 5.4% from the previous year. The Fed is also limiting its report on total student loan balances to quarter-end.

The NCUA’s latest figure for private student loans held by credit unions was $ 4.4 billion as of Dec.31, more than double the balance five years earlier.

Among credit unions, recent private student loan expansions by the nation’s two largest credit unions continued to result in significant portfolio gains by Navy Federal of Vienna, Va., And PenFed of Tysons, in Virginia ($ 23.4 billion in assets, 1.7 million members).

PenFed nearly tripled its private student loan portfolio. It held $ 130.8 million as of March 31, down from $ 45.7 million a year earlier.

However, several other large private student loan holders posted declines in the 12 months ending March 31. Student loans:

  • Fall 11% to $ 55.8 million at BECU, Seattle ($ 18.6 billion in assets, 1.1 million members).
  • Fall 2.2% to $ 46.4 million at Star One CU, Sunnyvale, Calif. ($ 9.1 billion in assets, 102,706 members).
  • Fall 5.2% to $ 49.2 million at Mountain America FCU, Salt Lake City ($ 7.5 billion in assets, 746,526 members).

Credit unions held $ 56.9 billion in credit card debt as of March 31, up 8.6% from the previous year. Balances fell 0.5% from February to March, compared to a gain of 0.3% a year earlier. Nonetheless, the share of credit union credit card debt was 5.8% in March, about the same as a month earlier and up from 5.6% in March 2017.

Some credit unions posted significant gains well above average. Credit card balances for the 12 months ending March 31:

  • Increased 25.6% to $ 310.4 million at First Tech FCU, Mountain View, Calif. ($ 11.8 billion in assets, 517,268 members).
  • Increased 28.5% to $ 426.3 million at Randolph-Brooks FCU ($ 8.8 billion in assets, 747,638 members).
  • Increased 22.8% to $ 408.6 million at Mountain America FCU (7.5 billion assets, 746,526 members).


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