Posted July 14th, 2015 No Comments
Nebraska Credit Unions Report Increasing Loan Originations

According to the quarterly data released by the National Credit Union Administration (NCUA) for the first quarter of 2015 and analyzed by Callahan & Associates, Nebraska credit unions posted strong growth across a variety of metrics, including member growth and loan originations. Nebraska credit unions added 17,205 members between March 2014 and March 2015, reporting a growth rate of 3.7%, outperforming national credit unions who reported 2.9% growth rate. Total loan originations grew 3.3% year-over-year at Nebraska credit unions, reaching $330.8 million in the first quarter. Strongest growth was seen in first mortgage originations, which grew 17.1% year-over-year.

Nebraska Credit Union 1Q 2015 Results:

Nebraska’s loan portfolio expanded by 7.9% over the previous March to reach $2.7 billion, with all major loan categories growing year-over-year. Other loans and new auto loan balances grew at the fastest rate, increasing 14.4% and 10.3% since March 2014.

Nebraska credit unions reported revenue growth of 5.8% in the first quarter, increasing $10.7 million year-over-year, the largest growth since the recession. Loan interest income, investment interest income, fee income, and other operating income all posted year-over-year increases in the first quarter 2015.

Nebraska credit unions posted a 3.3% year-over-year increase in total loan originations. This is primarily attributed to the 17.1% growth in first mortgage originations and 8.6% increase in consumer loan originations, which offset the decline in other real estate and member business loan originations.

Nebraska’s share portfolio increased 3.4% from March 2014, reaching $3.4 billion at March 31, 2015. The overall increase in share balances is driven by growth in regular shares (5.7%), share drafts (7.2%), and money market shares (2.4%).

Total auto balances at Nebraska credit unions reached $1.3 billion as of March 2015, a $1 billion increase year-over-year.

Nebraska credit unions’ net interest margin reached 3.04% as of March 2015, surpassing the national credit union average by 20 basis points.

Nebraska credit unions reported a 15 basis point year-over-year increase in their net worth ratio to reach 10.7% as of March 2015.

The average member relationship (the outstanding combined loan and share balances per member, excluding business loans) at Nebraska credit unions reported year-over-year growth of 1.5% to top $12,764 as of March 2015.

Credit card balances continue to grow and recover since a slow in growth in the first quarter of 2015. Nebraska credit unions posted 8.1% growth in credit card loans outstanding to reach a balance of $72.3 million.

The percentage of first mortgage sales into the secondary market to total first mortgage originations at Nebraska credit union soared year-over-year, growing 24.4 percentage points to reach 67.1% as of March 2015. This is also 28.5 percentage points higher than what is reported by credit unions nationwide.

Membership growth increased at a faster rate at Nebraska credit unions compared with the national credit union average. Over the past twelve months, Nebraska credit unions added 17,205 members, posting 3.7% growth. This is higher than the national growth rate of 2.9%.

Click HERE to read the full report.

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