The Bottom-Line Impact of Credit Union Loan Participations

This report analyzes and advocates for more and broader involvement of credit unions in loan participations.

Loan participations have been around for a while, but only about 30% of credit unions actively purchase or originate them.

This report—based on an analysis of industry data and interviews with senior executives at 12 credit unions active in loan participations—will advocate for more and broader involvement of credit unions in loan participations.

The analysis of industry data reveals that:

  • Purchased participation loans originated by credit unions increased by 61% between 2014 and 2017 as a percentage of total loans outstanding; purchased loan participations rose to nearly 3%.
  • Loan participation composition has shifted from commercial to consumer.
  • Credit unions purchasing loan participations increased their loan-to-share ratio by nearly 7 percentage points over the past four years.
     

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