ST. PAUL, Minn. (12/18/14)--Minnesota's credit unions posted healthy gains in loan growth in the third quarter, with outstanding loan balances jumping 10.1% year-over-year, according to data from the National Credit Union Administration.
Driven by business lending, which surged by 15% annually in the third quarter, the overall increase in annual loan growth was the highest since the first quarter of 2006.
"Credit unions are lending more to Minnesota businesses and consumers, which shows that confidence in today's economy also continues to grow," said Mark Cummins, Minnesota Credit Union Network president/CEO. "These loans are helping communities all across Minnesota build a brighter future."
Auto lending for both new and used vehicles also recorded a strong quarter, with increases of 7% and 11% respectively year-over-year.
Memberships also continued to climb at Minnesota's credit unions during the quarter, rising by nearly 8,000 members from the second quarter to a record high of 1,644,000.
Annually, the state added nearly 37,000 memberships.
Data provided by the Minnesota Credit Union Network also shows that memberships have risen steadily since 2011, and that asset growth has posted gains each year since 2007.
"All of these positive results show that Minnesota consumers continue to choose credit unions because they are trusted, locally owned financial partners," Cummins added. "Minnesotans see that credit unions work for people--not for profit--and they choose credit unions because they align with their own values."
Federally insured credit unions have posted healthy gains in loan growth throughout 2014, according to the data from the NCUA. In the third quarter, the pace of loan growth only quickened, with the median growth rate for loans outstanding topping 3.5%, up from 1.8% the prior year (News Now Dec. 10).