Skip to main content

Credit unions lending rose at a faster pace in most sectors than the small banks last year, according to data released this week by the FDIC and CUNA Mutual Group.

What credit unions lacked in size they made up for in speed compared with community banks and savings institutions in 2017.
Credit unions lending rose at a faster pace in most sectors than the small banks last year, according to data released this week by the FDIC and CUNA Mutual Group.
CUNA Mutual’s monthly trends report showed credit unions held $984.8 billion in total loans at Dec. 31, up 10.7% from a year earlier and a growth rate more than twice as fast as community banks.

Credit union assets rose 6.3% to $1.4 trillion due to a 6.3% increase in deposits, a 3% drop in borrowings and a 7.7% increase in capital.
With loan balances growing faster than assets, the loan-to-asset ratio ended 2017 at 70.4%, up from 67.5% a year earlier. The fast loan growth also helped loan delinquency rates fall to 0.79% in December, down from 0.83% a year earlier, according to CUNA Mutual.
The FDIC’s Quarterly Banking Profile showed loans at the nation’s 5,670 community banks and savings institutions rose 4.5% to $9.7 trillion, while assets grew 3.8% to $17.4 trillion.
Credit unions had faster growth in three major sectors:
  • Credit cards at credit unions grew 8.3% to $58 billion; at community banks they grew 8.2% to $865.1 billion.
  • Total car loans at credit unions grew 12.8% to $342.8 billion in 2017; at community banks they grew 1.8% to $450 billion.
  • Loans secured by real estate grew Total real estate loans at credit unions grew 9.3% to $480.9 billion; at community banks they grew 3.7% to $4.8 trillion. At credit unions, first-lien mortgages grew 9.9% to $397.1 billion, while second-lien mortgages grew 6.7% to $83.8 billion.
Much of credit unions’ overall growth in 2017 came from auto loans, which grew faster than most other parts of portfolios.
Real estate’s share of total loans fell 62 basis points to 48.8% by Dec. 31, while total car loans grew 66 basis points to 34.8%.
New car loans grew 14.3% to $135.7 billion, while used car loans grew 11.9% to $207.1 billion.
Gains among credit unions in new car sales came as overall unit sales of cars and light trucks fell 1.8%. U.S. dealers sold 17.3 million vehicles last year, below the record high set in 2016 at 17.5 million units. After last year’s drop in unit sales, sales for January through February are down 0.7%.
“Expect auto sales to slow to 17.1 million units in 2018, which is still above the 16.5 million sales rate that economists believe is the inherent long run demand,” the trends report said. “Factors supporting auto sales include: ample access to credit, low debt burdens, strong job growth, growing hourly earnings, rising stock prices and rising home prices.”
Also encouraging is low debt burdens. Household debt was 102% of disposable income in 2017’s third quarter, the lowest rate since the first quarter of 2002, according to the Federal Reserve’s Flow of Funds report. “This improvement in household debt should help the economy avoid a recession for the next couple of years,” the CUNA Mutual report said.

See you in Seattle




Comments

Popular posts from this blog

The FRB Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent.

  Recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. Beginning in April, the Committee will slow the...

Caught in Dot Partners with Boston Firefighters Credit Union

2 min read By  Maureen Dahill Published On: March 13th, 2025 Categories:  News 0 Comments on Caught in Dot Partners with Boston Firefighters Credit Union Big news, Dorchester!  Caught in Dot  is proud to announce our partnership with  Boston Firefighters Credit Union (BFCU) —a true neighborhood institution that’s been serving our local heroes since 1948. As a woman-owned business, we’re thrilled to team up with a community partner who shares our values of supporting and uplifting the people who make Boston great. BFCU was founded by Boston firefighters with one mission in mind:  “People Helping People.”  What started as a way to assist firefighters struggling financially has grown into a full-service financial institution serving  nearly 12,000 members —but their dedication to first responders and their families has never wavered. Over the years, membership has expanded beyond firefighters to include all Massachusetts first responders, including p...

Trump Administration Spurs Credit Unions' Return To Cryptocurrency

  03/06/2025 06:11 pm Share         By Ray Birch DALLAS—The Trump Administration is bringing more credit unions back to offering cryptocurrency, says Bank Social, which offers advice to CUs considering stepping into this space. The return to offering the service by more credit unions follows a sharp decline in cooperatives offering crypto services to members following the collapse of FTX in late 2022 and the sudden departure of NYDIG within the CU industry not long afterward. Becky Reed, COO of crypto platform Bank Social, said the two primary reasons credit unions are coming back is the Trump Administration’s pro-crypto agenda and its emphasis on deregulation. “The last six months we have seen interest begin to gain ground in digital assets—not just for investing but for payments, fractional lending and more,” said Reed. GlobalData banking analyst Harry Swain said FIs could face fewer crypto regulatory hurdles under the Trump Administration. “As you'll, recall ...

The Pros and Cons of Tariffs

Since there has been so much discussion on Tariffs, I felt a post would benefit our membership. Grant Sheehan CEO NCOFCU Tariffs 1440 Business & Finance Background A tariff—a word derived from the Arabic arafa, meaning “to make known”— is a tax imposed by a government on goods that are imported or exported . Historically, tariffs have served as a primary source of revenue and a means to protect domestic industries, as they make foreign products more expensive, encouraging consumers to purchase locally produced goods. The tools have a checkered history, famously bolstering US textiles, German steel, Japanese cars, South Korean technology, and more, arguably contributing to major economic downturns like the Great Depression. Tariffs can be specific (a fixed fee per unit) or ad valorem (a percentage of the item's value). Purpose Economically, tariffs aim to protect domestic industries, generate government revenue, and influence trade policy. By imposing taxes on imported goods —wh...

Buy Now, Pay Later Keeps Gaining Ground: New Study Shows Growth Surge

03/10/2025 06:31 pm Share         TROY, Mich.— A new study reveals the appeal of buy now, pay later is not waning, as the service saw significant growth last year. The J.D. Power 2025 U.S. Buy Now Pay Later Satisfaction Study shows BNPL enjoyed continued, significant growth in the number of consumers using the product year over year, with the highest usage among consumers from Generations Y and Z, and the highest growth period during the holidays. “The BNPL segment has undoubtedly grown in popularity, with more customers using these services than ever before,” said Sean Gelles, senior director of banking and payments at J.D. Power. “That’s been especially true around seasonal periods of higher spending, such as the holidays. Card-based BNPL products continue to lead the charge on satisfaction, as issuers are leveraging their existing brand awareness and equity to retain would-be defectors.” Following are some of the key findings of the 2025 study: Gene...