• Home
  • About

We CU Blog

Overall Lending at Georgia Credit Unions Was Up in First Quarter of 2015

1
  • by Allie Jackson
  • In Consumer Information · Credit Union News · Paying Attention
  • — 18 Jun, 2015

 

Highlights

  • Lending at Georgia credit unions softened somewhat from the fourth quarter of 2014, but remained positive overall in the first quarter of 2015, up 1.8 percent.
  • Vehicle lending for new auto loans was up 7.2 percent over the last quarter of 2014 and loans for used autos grew by 2.7 percent.
  • Georgia credit union checking account balances grew by 8.1 percent the first quarter of 2015 compared to the fourth quarter of 2014, a sign of economic stability. Total savings balances also gained 6.1 percent and money market accounts increased 2.7 percent.

ATLANTA – Consumer borrowing was up the first quarter of 2015 at Georgia’s 133 credit unions, although the rate of increase has slowed somewhat from the fourth quarter.

Vehicle lending remained the top performer for the state’s credit unions to start 2015, with new auto loans posting a 7.2 percent gain over the last quarter of 2014 and used auto loans growing by 2.7 percent. Also finishing in the positive were business and first mortgage loans, which had increases of 1.5 percent and 1.4 percent respectively.

Total lending at Georgia credit unions increased 1.8 percent in the first three months of 2015, a slight decline from a 2 percent increase the last quarter of 2014.

Georgians were paying down their debt in the first part of the year – a typical pattern following the holiday season. Credit card balances fell by 5.2 percent the first quarter of 2015 compared to the fourth quarter of 2014. Other unsecured loans were down 3.6 percent and second mortgage loans decreased by 2.1 percent.

Used car pricing is one of the economic indicators economists take into consideration when measuring the health of the economy. Although automotive industry reports note values for used cars are falling – alluding to a potential slowing economy – Georgia consumers benefited from overall positive economic conditions in the first quarter of 2015:

  • More people are working in Georgia. The unemployment rate continued its downward trend, ending the quarter at 6.3 percent.
  • Along with more work came fewer bankruptcies. Georgia credit union borrower-bankruptcy filings fell by more than 10 percent in the first quarter of 2015.

Georgia credit unions continue to offer financing advantages on a variety of loans.

According to data collected by Informa Research Services, the current average rate on a 4-year used vehicle loan at the state’s credit unions averages 1.30 percentage points lower than the comparable rate at Georgia banks. On a $20,000 used auto loan, the credit union advantage saves the Georgia consumer more than $500 in four years.

“Despite the indication that automobile lending has somewhat slowed from the last quarter of 2014, credit unions are guardedly optimistic about the economy,” said Mike Mercer, President and CEO of Georgia Credit Union Affiliates. “While the numbers show a softened growth, overall lending – including vehicle loans – at Georgia credit unions remained positive. A testament to benefits members receive from the credit union difference.”

In conjunction with the healthy economy, total Georgia credit union savings balances experienced a rapid upswing in the first quarter, growing by 3.8 percent. With interest rates remaining at historic lows, the trend towards short term liquid accounts continued.

Georgia’s steady workforce contributed to individual account balance growth. Credit union checking account balances grew 8.1 percent in the first quarter of 2015, while regular savings balances were up 6.1 percent and money market account balances increased 2.7 percent.

Membership tops 2 million in Georgia credit unions, which are not-for-profit, member-owned financial service providers serving a broad cross-section of consumers. As cooperative institutions, credit unions return earnings to their members in the form of lower interest rates on loans, higher savings deposit yields and fewer and lower fees compared to banks. As confidence in the economy continues its upward trend, more Georgia consumers are choosing credit unions as their best financial partner.

This information is based on data from Georgia credit unions that collectively serve 90 percent of the members and manage 94 percent of the assets in credit unions throughout the state. Credit Union National Association (CUNA) collects the data from the National Credit Union Administration each year. The information is then compared to state banks (information gathered by Informa Research Services).

Click here to view this month’s issue of Paying Attention, which includes graphics and a video. Click here to view previous data.

# # #

About Georgia Credit Union Affiliates Georgia Credit Union Affiliates (GCUA) provides services and support that help Georgia credit unions – with current memberships topping the 2 million mark – meet the financial service needs of the state’s credit union members. GCUA offers advocacy, educational, operational and marketing support for Georgia’s 133 credit unions, with combined total assets of more than $19 billion. More information can be found at http://www.asmarterchoice.org/ and on social media at https://www.facebook.com/creditYOUnion, https://twitter.com/HPALGa and https://twitter.com/Gcuagov.

Media Contacts:

Allie Jackson                          

Media Relations Manager      

678 542-3415                         

alliej@gcua.org     

Angi Harben

Director of Communications

678 542-3471

angih@gcua.org

             

 

Share

Tags: Auto loanschecking account balancesconsumer informationCredit Union National AssociationCUNAeconomic dataeconomic newseconomyFirst quarter findingsGCUAGeorgia consumer informationGeorgia consumersGeorgia Credit Union AffiliatesGeorgia credit union membershipGeorgia credit union savings balancesGeorgia Credit UnionsInforma Research ServicesLoan growthMike MercerNational Credit UnioNCUANew auto loansPaying AttentionUsed auto loans

1 Comment

  1. Zippy Loan says:
    July 3, 2015 at 4:17 pm

    Yes! Finally something about best car loan rate.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Previous story How One Couple Saved $1 Million and Retired in Their 30s
  • Next story HPAL Tip of the Week: Traveling
  • Recent Posts

    • Georgia’s Credit Unions Closed Out 2016 on a Strong Note
    • Connection Magazine: Make Them Want to Stay
    • Technology is Changing How Consumers Manage Finances
    • Start or build an emergency fund
    • Use your tax refund to pay down debt
  • Recent Comments

    • real estate investing in canada on HPAL Tip of the Week
    • Jonas Crunkilton on Credit unions and the Apple Watch
    • googly on HPAL Tip of the Week: Meal Planning
    • houseksa.com on HPAL Tip of the Week: Meal Planning
    • Zippy Loan on Overall Lending at Georgia Credit Unions Was Up in First Quarter of 2015
  • Archives

    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • November 2016
    • October 2016
    • September 2016
    • August 2016
    • July 2016
    • June 2016
    • May 2016
    • April 2016
    • March 2016
    • February 2016
    • January 2016
    • December 2015
    • November 2015
    • October 2015
    • September 2015
    • August 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
    • December 2014
    • July 2014
    • April 2014
    • March 2014
    • January 2014
    • October 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • March 2013
  • Categories

    • Annual Convention
    • Auto Loans
    • Branding
    • Budgeting
    • Connection Magazine
    • Consider This
    • Consumer Information
    • Contests
    • Credit Union News
    • Credit Union Professionals
    • Getting It Together
    • Helping People Afford Life
    • HPAL TIPS
    • Manage Your Money
    • Member Benefits Index
    • Membership Benefits Report
    • News You Can Use
    • Paying Attention
    • Poll
    • Savings
    • social media
    • Surveys
    • Tips
    • Uncategorized

© COPYRIGHT 2013 WeCU. A blog by creditYOUnion.