CUNA's Hampel, OCUL's Mercer weigh in on CU growth in Crain's Cleveland Biz
April 6, 2015
CLEVELAND (4/7/15)--Annual credit union lending growth has reached approximately 11%, which shows increasing consumer confidence in the economy, CUNA Chief Advocacy Officer Bill Hampel told Crain's Cleveland Business last week.
While the financial crisis of recent years had a negative impact on credit unions not seen since the Great Depression, Hampel said the growth could go even higher.
"We are expecting loan growth rates now that are about as high as they've been for the last 20 years," Hampel said, adding that the 11% growth is a level not seen since the mid-2000s.
Hampel and other credit union leaders, including Paul Mercer, president/CEO of the Ohio Credit Union League (OCUL), were part of an article in Crain's discussing how Ohio credit unions are rebounding from the economic downturn of several years ago.
It's estimated that a record $355 billion in loans were issued by credit unions in 2014, with first mortgages, auto loans and credit cards accounting for the majority of those loans.
According to OCUL, every major loan category for Ohio credit unions grew last year from 2013. This included a 19% increase in new auto loans, 7% increase in used auto loans, 7.4% increase in loans outstanding and 2.2% increase in loan interest income.
"Today, there's an awful lot of optimism that despite headwinds credit unions face, they're still well capitalized, and we think the cooperative model brings a unique opportunity into the marketplace, and we're seeing a strong response to that in terms of membership growth," Mercer told Crain's.