Credit unions continued to expand their commercial real estate portfolios at a faster pace than banks and other lenders in the first quarter.
A comparison of the NCUA data with a report released Tuesday by the Mortgage Bankers Association (MBA) found that, over at least the past year, credit unions have been growing their commercial real estate balances twice as fast each quarter compared to the banks and investors tracked by the MBA.
Credit union balances are also growing at least twice as fast for multifamily loans and twice as fast for the rest of commercial real estate.
As of March 31, credit unions were as follows, according to NCUA data:
Multifamily loans were $37.0 billion, up 12.8% from a year ago and up 2.5% from Dec. 31. Other commercial loans were $113.7 billion, up 10.9% from a year ago and up 1.6% from Dec. 31. Total commercial loans were $150.7 billion, up 11.4% from a year ago and up 1.9% from Dec. 31.
As of March 31, MBA data showed that banks and other investors held:
Multifamily loans were $2.1 trillion, up 4.8% from a year ago and up 1.1% from Dec. 31. Other commercial loans were $2.6 trillion, up 1.6% from a year ago and up 0.6% from Dec. 31. Total commercial loans were $4.7 trillion, up 3% from a year ago and up 0.9% from Dec. 31.
“Despite weak mortgage lending activity, commercial mortgage outstandings increased in the first quarter of 2024,” said Jamie Woodwell, head of commercial real estate research at MBA.
Jamie Woodwell
Woodwell said the first-quarter balance growth came despite weak mortgage issuance.
“All major capital sources increased their commercial mortgage holdings as repayments from property sales and refinancings were lower than normal,” he said.
Commercial banks continue to hold the largest share of commercial real estate, with $1.8 trillion in holdings as of March 31, or 38% of the total. Other holdings include portfolios held by Fannie Mae, Freddie Mac, insurance companies, and asset-backed securities.