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AUTO LOANS GROW AT RANDOLPH-BROOKS FEDERAL CREDIT UNION

Credit Union Exceeds $1 Billion in Auto Loans


LIVE OAK, Texas – Although the current trend has been to pay off debt and avoid new vehicle purchases, RBFCU recently surpassed $1 billion in auto loans for the first time in the credit union's history. RBFCU leaders credit the current low rate and the consistent across-the-board lending policies for both financing and refinancing as reasons for this unprecedented success.

"We've seen an increase in members who have taken advantage of our low-rate loans for an auto loan or to refinance a vehicle. At the same time, we've also seen many new members join RBFCU because of our low rates, then transfer their other accounts to us because they receive a superior value on overall products and services," said Mark Sekula, Chief Lending Officer for RBFCU.

Much of the loan volume has come from vehicle refinancing. Many consumers are unaware of the option to secure a lower rate through a financial institution. According to Sekula, "Refinancing is one of the most profitable decisions a purchaser can make; by refinancing a vehicle, you essentially pay less interest for the same product, and put more money back into your pocket."

The credit union dropped its auto loan rate to 1.9% APR at the beginning of June and has seen an increase in loan applications and approvals since that time. However, the growth RBFCU is currently experiencing began before this recent rate drop. RBFCU was one of the first financial institutions in South Central Texas to significantly drop lending rates. Since the first significant loan rate drop in 2009, the credit union has seen tremendous growth in several categories, specifically:

  • Membership has increased by 23 percent (almost 70,000 members)
  • Assets have increased by 40 percent (about $1 billion)
  • Loans have increased by 34 percent (about $750 million)

During the past five years, RBFCU has seen a 75 percent growth in overall assets.


About Randolph-Brooks Federal Credit Union

Established in 1952, Randolph-Brooks Federal Credit Union is a full-service financial institution cooperative whose mission is to improve members' economic well-being and quality of life. With assets exceeding $4.3 billion, RBFCU serves more than 350,000 members from 38 branch locations throughout Texas.