Iowa CUs’ 3Q growth reflects consumer confidence, league reports

December 21, 2015

DES MOINES, Iowa (12/21/15)--A strong lending environment powered the performance of Iowa credit unions in the third quarter, the Iowa Credit Union League reported.

“Increases in consumer loans and first mortgage originations reflect Iowans’ confidence in the economy,” said Patrick S. Jury, Iowa Credit Union League president/CEO. “Credit unions continue to experience growth in both loans and shares, creating strong member relationships that illustrate more Iowans are utilizing their local, member-owned credit unions as a reliable financial partner.”

Loan growth of 12.1% in the third quarter resulted in loan originations of $4.5 billion, which is up 14.5% from September 2014. This reflects a total loan portfolio of $10.1 billion at Iowa credit unions.

Iowa credit unions originated $2.4 billion in consumer loans as of Sept. 30, resulting in a $276 million increase from a year ago. In addition, mortgage originations topped $1.3 billion, reflecting a considerable increase of 28.9% from September 2014. Unsecured personal loans are up 7.3% and credit cards increased 9.5%.

As Iowa credit unions experience loan growth, loan delinquency has decreased 24 basis points since September 2014 to 0.70% as of September 2015. First mortgage delinquency dropped to 0.51%, 26 basis points lower than last year and 27 basis points lower than the national credit union rate.

Iowa credit unions have a net charge-off ratio of 0.34%, down 3 basis points from September 2014.

The total dollar amount of loan balances and deposits per member rose 6.3% to reach $18,852. This tops the national average by more than $2,100 as of September 2015. Total membership at the state’s credit unions grew by 3.1% as of September. Over the past 12 months, Iowa credit unions have added nearly 31,500 members. There are more than 1 million credit union members in Iowa. 

Share growth of $9.4 billion in the third quarter resulted in $11.5 billion held in shares at Iowa credit unions.

Total assets of Iowa credit unions stand at $13.7 billion, a 9.7% increase over September 2014.

The return on assets of Iowa credit unions as of September stands at 1.09%, the same as a year ago.