Credit Unions Set Loan Growth Record, Deposits Decline in Q2

U.S. credit unions easily set a 15-year loan growth record in the second quarter based on growth in several different categories, according to S&P Global Market Intelligence data.

Total loans and leases across the industry reached nearly $1.4 trillion at June 30, representing a quarter-over-quarter change of 6.3%, by far the strongest mark since the first quarter of 2007. The median change over that span is 1.7%. The previous 15-year high was set in the first quarter of 2022 at 3.6%.

Credit unions fueled the record growth with multiple loan types. First-lien one- to four-family loans accounted for $25.93 billion of the $83.21 billion quarterly increase. Home equity lines of credit surged $8.82 billion, or 11.2%. New vehicle loans were up $11.38 billion, increasing for the fifth consecutive quarter, while used vehicle loans rose for the 45th consecutive quarter with an increase of $17.33 billion. Unsecured loans including credit cards were up $6.72 billion.

In contrast to the record-breaking loan growth, deposits declined for the first time since the third quarter of 2014. The industry aggregate for shares and deposits was $1.870 trillion, down 0.1% quarter over quarter. Growth in the previous nine quarters had ranged from 1.2% to 8.3%.

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NOTE: See the latest Credit Union Profile (2Q2022) for a deep dive on the performance of Virginia-based credit unions.