Mortgage originations up 38% year-to-year in Neb.

September 25, 2015

OMAHA, Neb. (9/25/15)--First-mortgage originations at Nebraska credit unions shot up 38.1% year-over-year during second quarter 2015, contributing to an overall loan growth of 7.4% for the quarter, according to the Nebraska Credit Union League.

Nebraska credit unions reported significant gains across loan originations, shares and member growth. The league attributed the improvements to a growing economy and the state’s 70-basis-point drop in unemployment since second quarter 2014. Nebraska’s unemployment is 2.6%, or 2.7 percentage points lower than the national average.

Year-to-date overall loan originations totaled $776.5 million, an 11.6% increase over second quarter 2014.

First mortgages in the state’s credit unions totaled $224.3 million at the end of June. Credit unions also originated higher quality loans, reflecting a 21-basis point decrease year-over-year of mortgage delinquencies to 0.39%, less than half the national rate of 0.80%.

The strong performance ‘isn’t surprising, but it is not just about growth,” said league President/CEO J. Scott Sullivan. “Credit unions continue to demonstrate the value of the cooperative business model. Nebraska credit union success lies in their ability to meet the financial service needs of their member-owners.”

Other Nebraska results:

  • Sixty-three credit unions, six fewer than last year, operated in the state during second quarter. The decrease stemmed from mergers and liquidations.
  • Membership rose 3.7% year-over-year, adding 17,385 new members. That compares with national membership growth of 3.2% for the same period. The average number of members per Nebraska credit union increased 13.6, to 7,655, from second quarter 2014.
  • Product usage in the state’s credit unions posted annual gains, reaching 21.5% for auto loans and 8.6% for credit card penetration rates during second quarter. That compares with a nationwide auto penetration rate of 18%.
  • Shares grew 3.8% from second quarter 2014. Core deposits grew 6.6%. All share products except share certificates, individual retirement accounts and Keogh accounts, posted annual growth. The decline in IRAs and Keogh accounts is consistent with the national trend of consumers hesitating to lock up funds for long periods during interest-rate uncertainty.
  • The loan-to-share ratio for Nebraska’s credit unions grew to 80.9%, a 2.5-percentage point increase. The national credit union loan-to-share ratio averaged 75.4%.

The results are based on quarterly data released by the National Credit Union Administration.