Three Trends in Credit Unions to Watch

WASHINGTON–There were three trends in credit unions worthy of note during the second quarter of 2020, according to a new analysis from Callahan & Associates.

The numbers shared during the company’s Trendwatch webinar, are part of Callahan’s early data program, which the company said allows it to share industry trends three weeks before the data is officially released from the NCUA.

Based on 99% of the industry’s assets reporting, Callahan’s said it identified three standout trends from second-quarter credit union performance data:

• Members increased their savings in credit unions by more than $176 billion over the first six months of 2020 – nearly three times the total deposit increase reported in the first half of 2019.
  
• Credit unions continue to lend to members during the pandemic, funding $314 billion in loans through June – a 26% increase versus the first half of 2019 that was driven by a 94% jump in first mortgage originations.
  
• More than 4.1 million consumers have joined a credit union since June 2019. Thanks to deepening member engagement, the average member relationship increased by $1,392 year over year to reach $20,676.

‘Unusual Times’
“Members are turning to their credit union during these unusual times, as evidenced by the double-digit savings growth,” said Jay Johnson, Callahan chief collaboration officer. “This strengthens the relationships with their credit unions and underscores the trust they have in the cooperative model. Of course, the growth wouldn’t happen without credit union employees, who are the financial first responders for members. Credit union employees were able to adapt to a new work environment on a short timeline while continuing to serve members and help them navigate a period of tremendous uncertainty.”

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