Credit unions have been making a push to offer more member business loans (MBL) to members. Callahan & Associates found that 34.4 percent of U.S. credit unions offer MBLs, as of September 2015. There are six credit unions from Alabama and Florida that are ranked in the top 100 of credit unions seeing major growth with their MBL program. Suncoast CU in Tampa is the highest ranked credit union from Alabama and Florida. It has seen 115 percent growth in MBLs, year over year.
Total MBL outstanding balances topped $50.9 billion which is a 12.29 percent year-over-year increase from September 2014. Looking a little deeper into MBLs shows that they are growing in size and popularity but still only account for 6.5 percent of the total industry loan portfolio.
“Credit unions participating in member business lending outperformed credit unions that do not offer member business loans across a variety of metrics, including return on assets (ROA), delinquency, and member and share growth” said Callahan Director of Industry Analysis Sam Taft. “The most notable difference is loan growth. Credit unions that participate in MBL expanded their total loan portfolio 11.8 percent annually, compared to 6.2 percent for credit unions that do not.”
Read more on Callahan’s website.