HARAHAN, LA (August 28, 2013) -- According to a recent report in Credit Union Times (MBLs Grow 34% Since 2008, Bank Commercial Loans Down 10%, 08/19/2013), despite the highs and lows within the business lending sector over the past decade, credit unions have still managed to show solid member business lending growth.
So how are Louisiana credit unions doing? According to NCUA data from March 2013, twenty-five Louisiana credit unions reported that they offer member business loans. These credit unions have 803 business loans outstanding, totaling $172,306,300 as of March 2013 compared to 747 business loans outstanding totaling $147,616,473 in March 2012. This is a 16.7% growth in the total dollar amount of loans outstanding and a 7.5% growth in the number of loans.
Over half of the total loans outstanding are real estate secured business loans: owner occupied non-farm non-residential property accounts for 30.51% of dollars outstanding and non-owner occupied non-farm non-residential property accounts for 27.81% of dollars outstanding. See the graph below for a complete breakdown of loan types.
Types of Business Loans ($) Outstanding
Louisiana Credit Unions, March 2013
This growth in the first quarter of 2013 is a continuation of a very strong growth in business lending at Louisiana credit unions for the past five years. Since 2008, the number of business loans outstanding for Louisiana credit unions has doubled, from 418 in December 2008 to 888 in December 2012. The total dollar amount of business loans outstanding has more than tripled, from $51,208,948 to $157,098,970.
Total Business Loans ($) Outstanding
Louisiana Credit Unions
Through the Member Business Services Council (MBSC), the Louisiana Credit Union League is supporting credit unions who are engaged in or exploring the possibility of offering business services to their members. Developed in 2011 through a collaborative effort between the League and member credit unions, the MBSC currently has over sixty members and provides opportunities for members to network with peers, share best practices, address issues concerning credit unions, and learn from experts in their professional field. The council is currently working with CU Business Group to host their second annual business lending school in Baton Rouge, LA this October. To learn more about LCUL's Member Business Services Council or to join, contact Jennifer Green at jgreen@lcul.com or (800) 452-7221, ext. 3024.
For over 75 years, the Louisiana Credit Union League has represented the unique interests of more than 200 not-for-profit credit unions and the more than one million credit union members that they serve in the state of Louisiana.