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For Immediate Release Contact: Patrick Harris Director of Media Relations Ohio Credit Union League pharris@ohiocul.org 800-486-2917

Credit Unions Capture Record Level of
Auto Lending Market Share

Credit union membership grows by more than 53,000;
Mortgage originations double

Columbus, Ohio (January 6, 2010) – Total auto lending market share increased to a record 18.2% at Ohio credit unions from Sept. 2008 to Sept. 2009 despite a decline in vehicle sales.  Similarly, first mortgage originations increased 51.9% during the same time period, totaling $1.37 billion in 2009 versus $904 million in 2008.  Membership also grew during the 12-month statistical period, as more than 53,000 Ohioans joined credit unions.

Capital levels at Ohio credit unions remain high at 11.9% of assets, a higher level than Ohio banks and thrifts, and U.S. credit unions and banks.

“This is an unprecedented time for credit unions in the state of Ohio,” said Paul Mercer, President of the Ohio Credit Union League.  “Credit unions have money to lend despite the difficult economy, and the response from consumers has been positive, with growth in auto lending, mortgages, and member business lending.  We look to continue these trends and be a partner to our members and the communities we serve as we all strive for economic recovery.”

During the 12-month period, credit unions witnessed an overall loan growth of 6.64%, with auto loan balances increasing 11.9% and first mortgage balances increasing 3.9%.  Total delinquency rose to 1.37% in September, up from 1.21% the previous year.  While delinquency is on the rise, it remains below the national credit union average of 1.69% through September.

An area where credit unions are looking to grow even more is member business lending (MBL).  Despite restrictions imposed by federal law, credit union business lending grew 11.2% to $333 million in outstanding loan balances.  The 90 Ohio credit unions that provide MBL reported an average delinquency rate of 3.65%, which is above the national average but down from the previous June (3.84%).  Credit unions’ business lending is currently capped at 12.25 percent of assets; however, legislation pending in Congress would raise the cap.  The Credit Union National Association reports that a higher lending authority could provide $10 billion in new small business loans and at least 108,000 new jobs nationally.

The total number of Ohio credit union members grew by 53,183 from Sept. 08 to Sept. 09 to more than 2.65 million.  The average Ohio credit union has 6,685 members, $50.15 million in assets, and $31.4 million in loans.  Ohio credit unions employ more than 6,800 Ohioans and contribute nearly $140 million in compensation to employees on an annual basis, according to the most recent quarterly financial report.

Credit unions are not-for-profit, democratically-controlled cooperative financial institutions.  Members of credit unions are owners, and each member-owner has an equal say in the operations of the credit union.  Almost all Ohioans are eligible to join a credit union.  To find a credit union to join, visit www.FindACreditUnion.com, click the “Search” tab, and fill in the prompted fields.

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The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 397 credit unions. Credit unions are not-for-profit financial institutions owned and democratically-controlled by their members. Ohio credit unions provide savings, loans, and other consumer financial services to their 2.65 million members. To learn more, visit www.OhioCreditUnions.org.