Loan growth accelerating at US credit unions

Loan growth at U.S. credit unions set a three-year high in the third quarter of 2021.

Total loans and leases for the industry reached $1.235 trillion as of Sept. 30, up 2.4% from June 30 and representing the highest quarter-over-quarter growth since the second quarter of 2018. The majority of the $29.19 billion growth was from fixed-rate, first-lien mortgages with maturities greater than 15 years ($12.99 billion) and used vehicles ($8.63 billion).

Tysons, Va.-based Pentagon FCU added $2.43 billion in loans to its balance sheet in the third quarter, the highest amount in the industry. The largest credit union by total assets, Vienna, Va.-based Navy FCU, reported growth of $1.46 billion. On the other end of the spectrum, Eugene, Ore.-based Oregon Community CU's loan base declined by $204.6 million.

In contrast to the banking industry, credit unions have been growing loans faster than deposits. In the third quarter, shares and deposits at credit unions increased 1.9%, which was 52 basis points lower than loan growth. The loans-to-deposits ratio was 69.9% for credit unions as of Sept. 30, compared to 57.0% for banks and thrifts.