Iowa’s credit unions finish 2014 strong

Iowa's credit unions saw lending growth in the double-digits in 2014, according to figures released by the Iowa Credit Union League.

Total lending for the year was up 12.1 percent from 2013, outpacing the national average of 10.4 percent. Iowa's credit unions loaned out more than $9.2 billion and saw growth in autos loans, mortgages, personal loans and business loans.

The Iowa Credit Union League represents the interests of the state's 107 credit unions, not-for-profit financial institutions.

New and used auto loans increased 20.9 percent and 15.9 percent, respectively. There also were gains in the loan portfolios for first mortgage loans, which were up 9 percent for the year.

Unsecured personal loans were up 7.9 percent and credit cards increased 9.2 percent while member business lending was up 23.1 percent, according to the credit union league.

Consumer loans were up substantially, jumping 32 percent from $784.7 million in 2013 to $3.2 billion in 2014. That is well about the national average of 14.2 percent.

'The economy is stabilizing and growing,” said Rich Schneider, a spokesman for the Iowa Credit Union League. 'The housing and auto markets are improving.”

Factors like the falling unemployment rate, growing consumer confidence and increased consumer spending are pushing more people to take out loans and make purchases, which is good for credit unions and the economy, Schneider added.

The state's credit unions experienced a 6.8 percent growth in share and deposits, which rose to $10.9 billion. Nationally, share and deposit accounts at credit unions grew 4.5 percent to $963.1 billion.

Total membership at the state's credit unions also grew, rising 2.2 percent in 2014, More than 22,705 people joined an Iowa credit union bringing membership to more than 1 million people.

Eight Iowa credit unions merged in 2014, which Schneider said reflects a national trend. About 285 credit unions merged or dissolved nationally over the same time period.

'It's difficult to speculate” on why certain credit unions merged, he said. 'It could be because of competitive pressure within the market or increasing regulatory burdens.”