Second Quarter Shows Georgia Credit Union Members in the Mood to Buy
Press release from the issuing company
Tuesday, September 9th, 2014
The state's 138 credit unions expanded on their first quarter gains to post even stronger operating results in the second quarter of 2014, according to Georgia Credit Union Affiliates (GCUA). Lending saw a quarterly growth rate of 3.8 percent (15.2 percent annualized), which is five times the rate recorded last quarter.
New vehicle loans saw a 14.4 percent growth in the first six months of 2014 and used vehicle loans topped out with a 6.5 percent gain.
"The reason Georgia credit union members are investing in their future with more automobile loans is a combination of the state's continuing economic progress in conjunction with the credit unions' ability to offer their members better interest rates and other valued benefits," said GCUA President and CEO Mike Mercer.
Georgia's credit unions also saw a growth of 2.6 percent on first mortgages and 0.3 percent for second mortgages. Other unsecured loans grew .5 percent and credit card balances fell 3.5 percent the first half of the second quarter.
According to Informa Research Services, Georgia credit unions continue to offer members substantial financing advantages compared to banks in the state.
The report found:
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The current average rate on a 5-year new vehicle loan averages 0.57 percentage points lower than the comparable rate at Georgia banking institutions
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A standard credit card at a credit union offers a 4.5 percent advantage to state bank rates
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Home equity loans (70 percent LTV $25,000/5 yr.) hold a .53 percent rate average advantage to bank loans
Georgia credit unions recently reached a milestone of 2 million members. One in every five residents of the Peach State now belongs to a credit union.
Releasing data compiled through its June 2014 Monthly Credit Union Estimates, Credit Union National Association (CUNA) estimates credit union memberships nationwide expanded by 2.9 percent in the past 12 months.
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Georgia Consumer Loan Interest Rate Averages
August 11th 2014 - Source: Informa Research Services
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| Product | GA Credit Unions | GA Banks | CU-Bank Difference |
| Home Equity Loan -70%LTV $25,000/5 Yr. |
5.18%
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5.71%
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-0.53%
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| 15 Yr. Fixed Rate Mortgage | 3.30% | 3.36% | -0.06% |
| Credit Card Standard | 11.83% | 16.33% | -4.50% |
| Credit Card Platinum | 9.17% | 11.03% | -1.86% |
| New Vehicle - 5 Yr. | 2.89% | 3.46% | -0.57% |
| Used Vehicle - 4 Yr. | 3.03% | 3.96% | -0.93% |
Published quarterly, "Paying Attention" compiles savings and lending data from 45 credit unions from across the state, representing 94 percent of credit union assets and 89 percent of members in Georgia.
More information about Georgia credit unions is available at www.georgiacreditunions.org.
