WESTBROOK, Maine (12/31/15)--Maine’s credit unions have commandeered a larger chunk of the market from the state’s banks, according to recent numbers.
The state’s credit union movement increased total loans and real estate loans at faster rates than Maine savings institutions on an annual basis in the third quarter.
Furthermore, Maine’s credit unions posted auto-loan growth at a rate twice that of the state’s commercial banks.
“Maine credit unions have been a steady and consistent source of lending for consumers, and these figures reflect the growing trend of Maine consumers turning to credit unions for their lending needs,” said John Murphy, Maine Credit Union League president (Weekly Update Dec. 23).
Credit unions in the state recorded a 6.1% increase in real estate loan growth for the year that ended in September, compared with 5% at banks, the league reported. For auto lending, credit unions posted a 10.7% increase compared with a 10.8% drop for banks.
Credit unions also outperformed banks in savings rates, recording a 7.5% increase annually in September compared with a 5.4% increase at the state’s banks.
“These numbers reinforce the strength of Maine credit unions, and the clear message being heard by consumers--Maine credit unions are ready, willing and able to lend,” Murphy said. “When the Great Recession hit in 2008, banks contracted their lending areas and availability for consumers and small businesses. Meanwhile, Maine credit unions continued to lend, understanding that providing access to credit to consumers and small businesses at a time of great need was more important than ever.”