The growth of outstanding loan balances is fixed at 9.8% in the second quarter, even though the number of credit unions has decreased compared with year-ago data.
The National Credit Union Association estimates loan balances equal to almost $674 billion by the end of the quarter. The fact reflects the most intensive loan growth rate in the course of the recent 8 years.
Short-term small loans increase reached the rate of almost 28% compared to the second quarter of the previous year than follow non-governmental student loans, which exceed the previous year amount for almost 26 %.
The information comes from the most recent reports of NCUA, dealing with credit union regulations and supervision.
The report reflects the rise of new auto loans for 17% climbing the amount of approximately $77.7 billion, while the used auto loans showed about 12% year-over-year increase, totaling nearly $135.3 billion by the end of June. At the same time business loans balances reached 12 % to $48.8 billion.
At the same time the consolidation in the credit union sector should be mentioned, the number of federally-insured credit unions fell below 6500 which is 252 institutions less than the previous year, while the number of customers has already exceeded the point of 98 million.
Large Credit Unions, the assets of which exceed $500 million, outperform the smaller ones. There are about 450 Unions of such kind and they control about 70% of total assets in the sector, which are equal to $760 billion combined.
There are no such large credit unions in Western New York; the ones with most assets in this area do not possess more than $350 million. In Niagara County, the largest one is Cornerstone Community Federal Credit Union holding approximately $320 million in assets, as stated by Business First research.