DULUTH, Ga. (9/11/14)--Credit unions in Georgia are benefiting from the state's improving economic status, experiencing second-quarter loan growth five times that of the first quarter.
The rate of loan growth in the second quarter was 3.8% compared with 0.7% in the first quarter, the Georgia Credit Union Affiliates (GCUA) reported. This puts the annualized gain at 15.2%.
Nationally, the median growth rate for loans was 3.2%, according to the National Credit Union Administration's quarterly map review data released Tuesday for the second quarter ended June 30 (News Now Sept. 10). (See related story: Fla., Ala. CUs report record membership numbers.)
New vehicle loans revved up with a 14.4% gain in the first six months, and used vehicle loans saw a 6.5% advance--growth that was noted by The Atlanta Journal-Constitution.
"The reason Georgia credit union members are investing in their future with more automobile loans is a combination of the state's continuing economic progress in conjunction with the credit unions' ability to offer their members better interest rates and other valued benefits," said President/CEO Mike Mercer in GCUA's September Paying Attention report.
New-vehicle loans with five-year terms were 57 percentage points less than comparable rates at Georgia banks, with used-vehicle loans with four-year teams coming in at 93 percentage points less.
Mortgages are also on the upswing, with a 2.6% increase in first mortgages and 0.3% gain for second mortgages. Other unsecured loans grew 0.5%, and credit card balances fell 3.5%.
The report also found that a standard credit card at a credit union offers a 4.5% advantage to state bank rates.
Credit union membership continues to tick upward with Georgia reaching the 2 million membership milestone.
The report compiles savings and lending data from 45 credit unions statewide, representing 94% of credit union assets and 89% of members in Georgia.