Skip to main content

Membership Growth Slightly Faster in Last Year; Loans Grew at Fastest Rate in 17 Years According to Callahan & Associates.

 WASHINGTON—The rate of credit union membership growth during 2021 was slightly better than that of 2020, while lending grew at its fastest pace in 17 years, according to Callahan & Associates.

The company shared the insights on the addition of more than 4.8-million new members (3.8% growth) last year  and other data points during a recent quarterly Trendwatch webinar.

Among the other key highlights from the Callahan & Associates’ analysis:

Annual Loans Growing At Fastest Rate In 17 Years

For the first time since 2019, the rate at which annual loans have grown has outpaced the growth of shares, the company said.

“Loan growth rose to 11.7%, up over 7% from last year’s growth. The loan portfolio is currently growing at the fastest annual rate since 2005,” Callahan’s reported. “Share growth slowed to 9.3%, down from the extraordinary 23.1% growth rate seen in the prior year.”

Credit unions are also keeping more loans on their balance sheet, according to the Callahan analysis, while members are paying down loans at a slower rate and credit unions are “not as quick to sell loans to the secondary market.”

Callahans 1

Consumer Loan Originations Up Significantly

Callahan’s reported consumers and small businesses continued to turn to credit unions during the first quarter of 2022. “Non-real estate consumer loan originations are up 11% from the year prior, while commercial loan growth is up 20%,” its analysis noted. “These trends signify the increasing impact that credit unions have for the small businesses within their community.”

Average Member Relationship Continues To Grow

In a trend that has continued for the better part of a decade, Callahan’s said the average loans per member and shares per member rose once more.

Thus, the average member relationship grew by $1,296 from Q1 ’21 to Q1 ’22, according to Callahan’s.

“The increased growth in this category highlights the bonds between credit unions and their members. The ACT Model was referenced in regard to this metric,” Callahan’s reported. “The ACT Model empowers credit unions to respond to member needs by Acknowledging their concerns, Confirming their needs, and Taking action.”

Callahans 2

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Why Avoiding "I" in Marketing Presentations Matters

  Grant Sheehan, CCUE | CCUP | CEO NCOFCU  You know how things just stick with you? Well, many years ago, my marketing professor started off his class with the following, and it has never left me.  The Power of Perspective: Why Avoiding "I" in Marketing Presentations Matters In the world of marketing, effective communication is paramount. One valuable piece of advice that often comes from experienced instructors and industry veterans is the importance of avoiding the use of the word “I” in presentations and reports. At first glance, this may seem counterintuitive; after all, many individuals feel that personal anecdotes and experiences can enhance a message. However, upon deeper reflection, the reasoning behind this approach reveals itself as essential for achieving impactful communication. Building Objectivity When marketing professionals present their findings or insights, it’s important to establish credibility. Utilizing data, surveys, and feedback from cu...
Post a Comment
Read Complete Article HERE>»

Fresh First Quarter 5300 Data Is Live. How Do You Compare?

  CALLAHAN RESOURCE Fresh First Quarter Data Is Live. How Do You Compare? The latest NCUA call report data is out, and while you’ve been focused on day-to-day priorities, market shifts might be affecting how you reach your goals. That’s why credit union leaders are already benchmarking performance to spot trends and inform their next moves. Ready to join them? Schedule a free performance analysis session with Callahan to gain a clear view of where you stand. Schedule Now
Post a Comment
Read Complete Article HERE>»

Both Sides of The Desk!

With over 50 years of experience in the credit union sector, I have had the privilege of observing and participating in its evolution from various vantage points. My journey has taken me from serving as a dedicated volunteer holding critical leadership roles, including serving on the supervisory committee, as director, and as board chairman, culminating in my tenure as CEO for 12 years and now founder and President/CEO of the National Council of Firefighter Credit Unions . This extensive background has enabled me to " Sit On Both Sides Of The Desk ," blending operational expertise with strategic oversight. In this blog post, I want to share how this dual perspective has enriched my understanding of credit union dynamics and fostered more effective governance. By leveraging the insights gained from years spent navigating both the intricacies of daily operations and the broader strategic objectives, I have witnessed firsthand the transformative power of collaboration, communi...
Post a Comment
Read Complete Article HERE>»

Agencies Issue Exemption Order To Customer Identification Program (CIP) Requirements

WASHINGTON--The Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, and NCUA, with the concurrence of the Financial Crimes Enforcement Network, issued an order Friday granting an exemption from a requirement of the Customer Identification Program (CIP) Rule implementing Section 326 of the USA PATRIOT Act. The CIP Rule requires a bank or credit union to obtain taxpayer identification number (TIN) information from its customer before opening an account, and the exemption permits a bank or credit union to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, the agencies stated in a joint release. The order applies to accounts at all entities supervised by the agencies. "Since the CIP Rule was issued initially in 2003, there has been a significant evolution in the ways consumers access financial services, along with a rise in reported customer reluctance to provide their full TIN due, in part, to...
Post a Comment
Read Complete Article HERE>»

Fed Chair To Senate: Tariffs May Trigger Persistent Inflation, Slowing Rate Cut Plans

WASHINGTON— Federal Reserve Chair Jerome Powell told a U.S. Senate panel Wednesday that while the Trump administration’s tariffs may lead to a one-time spike in prices, the risk of more persistent inflation is significant enough for the central bank to proceed cautiously with any further interest rate cuts, Reuters reported. Although economic theory suggests tariffs are typically a temporary shock to prices, “that is not a law of nature,” Powell said, explaining that the Fed wants greater clarity on the scope of the tariffs and their impact on pricing and inflation expectations before making additional moves on borrowing costs, Reuters said. "If it comes in quickly and it is over and done then yes, very likely it is a one-time thing," that won't lead to more persistent inflation, Powell said. But "it is a risk we feel. As the people who are supposed to keep stable prices, we need to manage that risk. That's all we're doing," through holding rates steady ...
Post a Comment
Read Complete Article HERE>»