WASHINGTON–Credit unions posted outstanding growth in shares, loans, and membership in 2015, according to analysis of preliminary year-end 2015 data compiled by Callahan & Associates.
Influenced by a 33.2% year-over-year growth of first mortgage originations, credit unions continued to grow loans at a record rate, Callahan’s said, noting CUs lent a record $410 billion to more than 28 million members in 2015, a year-over-year total origination increase of 15.9%.
“Credit unions helped 2.2 million more members in 2015 with smart borrowing options designed meet their needs,” said Callahan & Associates Partner Jay Johnson during a Trendwatch webinar. “Consumers continue to trust credit unions and take advantage of their traditionally lower rates as the U.S. economy improves.”
Primarily driven by share drafts, which grew 14.3% year-over-year, total shares grew 7.0% to surpass a record $1 trillion. Total membership saw a net gain of 3.7 million in 2015, bringing the total nationwide to 104 million members. Members are also holding record average balances totaling $17,000 per member, a 5% increase from December 2014, Callahan’s reported.
“As credit unions continue to grow members, loans, and deposits, the question then becomes: what will sustain this success? The answer lies in member value,” added Erik Payne, associate editor for CreditUnions.com. “Credit unions continue to drive value to members through lower fees, which have steadily declined over the past five years.”
Callahan’s added that in response to safety and soundness requirements, net worth and total capital balances are rising, and a consistent coverage ratio (allowance for loan losses/delinquent loans) position of 114.7% shows that balance sheets are well positioned for potential losses.