Spokane-area credit unions say they experienced an uptick in overall loan originations from 2014 to 2015, sparked in part by robust demand for auto loans. 

The demand for autos here mimicked what was a national trend in 2015.

Experian Automotive, operated by Experian PLC, which collects information on people, businesses, motor vehicles, and insurance, says U.S. automotive loan balances climbed nearly 12 percent to reach $987 billion in the fourth quarter of 2015, the highest level since Experian began publicly tracking the data in 2006.

Experian’s Automotive Finance Market report says the growth in auto loan balances was driven mostly by finance companies and credit unions, which saw increases of 23 and 16 percent, respectively, in the fourth quarter, compared with the year-earlier period.

“The boost in automotive sales has contributed to a strong quarter for all lender types across the industry,” said Melinda Zabritski, senior director of automotive finance for Experian in a press release issued earlier this month.

Meanwhile, Enterprise Car Sales, a service of Enterprise Rent-A-Car, which claims to be the largest car rental brand in North America, said in a separate press release that it generated close to $500 million in loans to nearly 28,000 credit union members last year. It said credit union loans for its used vehicles jumped about 14 percent last year.

Similar percentage increases were seen here as well.

Numerica Credit Union experienced an 11 percent increase in auto loans in 2015 compared with 2014, says media relations liaison Elizabeth Giles. Overall, Numerica experienced a 9 percent increase in total loans. Giles says that overall increase amounted to $106 million in loan growth.

“We’re clearly seeing more confidence among our customers,” Giles says. “Not just in auto loans, but in home equity lines of credit and business services. Last year we experienced a 70 percent increase in home equity loans compared to 2014. That’s just an enormous jump.”

Though unable to be reached by phone, Jana Erny, Numerica’s vice president of retail lending, said in an email to the Journal that Numerica ended last year with total loans of $1.27 billion, up sharply from $1.16 billion at the end of 2014. 

Numerica has more than 115,000 members and has $1.5 billion in total assets. It’s the fifth-largest credit union in Washington and the second largest based in the Spokane area. Membership is open to anyone who lives in Washington state or the Idaho Panhandle. The credit union has 19 branches and just opened its newest branch in Post Falls this month.

Dan Hansen, spokesman for Spokane Teachers Credit Union, says the Spokane area’s largest credit union  experienced strong gains last year.

“In general, 2014 and 2015 were both very good years for us,” Hansen says. Lending volume was up 9.4 percent last year and 9.5 percent the prior year, he says.

And though it’s still too early in 2016 to cite a trend, Hansen says the year is off to a good start.

“We saw strong auto loans in January in part because gas prices are low. Also, in the last three weeks, we’ve seen a strong demand for mortgage loans,” Hansen says. “It’s a little bit of a surprise because we anticipated a little drop in mortgages because consumers have already refinanced or because home values are starting to rise.”

STCU has 146,000 members, more than $2.2 billion in total assets, and 18 branch locations in Eastern Washington and North Idaho.

And it wasn’t just the larger credit unions that experienced loan growth. 

Progressions Credit Union at 2919 E. Mission—with slightly more than 4,700 members—experienced a 12 percent increase in total loans last year, says Mari Zumbiel, the credit union’s CEO and president.

“Besides some great rates and great programs I believe we offer, we saw a real pent-up demand for autos last year still stemming from the recession,” Zumbiel says.

Progressions saw total loan originations increase to $43 million last year from $38 million in 2014. Meanwhile, auto loans grew to $21 million in 2015 from $17 million in 2014, up 23 percent, she says.

Seattle-based Inspirus Credit Union, with a branch at 5123 E. Third in Spokane Valley, up 20 percent increase in auto loan balances last year. Inspirus is the former School Employees Credit Union of Washington. Approximately 4,600 of its 80,000 members live in Spokane County.

Moving forward in 2016, Hansen of STCU says the credit union expects to see “mortgages drop off a little” in response to the possibility that the Federal Reserve could raise interest rates. 

“But overall, I think 2016 is going to be similar to the last two years, and autos are going to play a key role in that,” Hansen says.

As for Numerica this year, Erny says, Using 2015 as an indicator of future loan volume based on our members’ confidence in the economy, we anticipate increased loan origination.”