ATLANTA – Georgia's credit unions closed out 2015 with loans up 12% for the full year.
In 2014, the year-over-year increase in total loans for Georgia's credit unions was 11.1%, according to Georgia Credit Union Affiliates.
The fourth quarter's top loan performer in 2015 was second mortgages, which posted a quarterly gain of 14.3% and finished the year up 13.6%. Although it was evidence of an economic slowdown for the fourth quarter, it was a stark difference from 2014, when second mortgages declined by 1.5% overall, the GCUA reported.
New vehicle loans remained the top loan category in 2015 with a 12-month gain of 20.5% and a fourth quarter increase of 1.7% in Georgia. In fact, all loan categories finished the year in positive territory with the trend toward big-ticket purchases continuing. Used auto loans grew 1.3% for the quarter and 12% for the year. First mortgages were up 3% in the final quarter, with a yearly gain of 10.4%.
Business lending also finished 2015 strong with a 10.8% overall increase. “This is a significant jump, as member business lending was down 3.4% the previous year,” the GCUA said.
Other unsecured loans finished 2015 with a gain of 4.9%, although this category was down slightly from the 5.1% gain in 2014. Credit cards rounded out overall loan growth, with a 3.1% increase, which was up from a 2014 year-end increase of 1.8%.
"With a total loan growth of 12% for the year, it's clear we've come a long way since the 2009 recession," said Mike Mercer, president and CEO of Georgia Credit Union Affiliates. "Consumers are clearly spending with more confidence; they're investing in big-ticket purchases like new homes and vehicles. Low interest rates have made home and car purchases especially attractive and with real estate prices now moving higher, home owners seem to be willing to put money back into their houses."
Meanwhile, Georgia credit union savings balances rebounded in the fourth quarter of 2015, growing by 1.7% in a quarter that historically sees a decline in savings balances due to the holiday effect – when members typically spend their savings and/or borrow money going into the holiday season, the GCUA said.
In comparison, last year overall savings balances grew 0.8% in the fourth quarter of 2014. The 2015 fourth quarter gain combined with a very robust first quarter growth of 3.8%, worked together to produce a full year 2015 savings growth rate of 5.2% -- another indicator of a healthy economy where consumers are able to both spend and invest.
Short-term liquid accounts remained the preferred savings vehicles of Georgia credit union members as the historically low interest environment continued through the fourth quarter. Money market accounts grew by 1.5% for the quarter, regular savings 1.2%, and IRA/Keogh accounts grew by 0.9%. Certificates shrank by 2.1%.
Total memberships in the state's credit unions grew by 0.8% in the fourth quarter and 3.9% in the twelve months ended December 2015. Current Georgia memberships top the 2.1 million mark.