Home > Pressroom > News Release: Consumers continue flight to safety, CUs

 

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

Flight to Safety Benefits Financial Cooperatives –

Growth Continues Among Safe, Strong, Stable Credit Unions

Ohio credit union loans, deposits, and capital
all show growth exceeding national averages

Columbus, Ohio (April 29, 2010) – Ohio credit unions are well-capitalized at 11.7% of assets collectively, a level higher than banks and thrifts around the state and nationally, according to the Ohio Credit Union Quarterly Performance Summary.  Growth was witnessed in nearly all of the economic indicators for financial institutions, including loans and deposits, which increased more than $600 million and $1.8 billion respectively from Dec. 31, 2008 to Dec. 31, 2009.  Membership increased nearly 30,000 during the same statistical period.

“2009 was a banner year for our credit unions, and every indication is that this growth trend will continue,” said Paul Mercer, President of the Ohio Credit Union League.  “Many factors contributed to our success, but the anti-banking sentiment among consumers and their eagerness to invest in a community-based financial institution were important drivers.  Our credit unions also impressed upon new and existing members the empowerment that comes with becoming an owner of your institution, not just a customer.”

In total, credit unions in Ohio had $12.4 billion in loans at year-end 2009.  Auto lending continued to be a driving force behind loan growth, with market share growing from 12.4% in Dec. 2008 to 17.1% in Dec. 2009.  Ohio credit unions also saw increases in Member Business Lending (MBL), which grew 11.2% from December to December.

As the 30-year fixed rate mortgage dropped to historic lows, and then hovered around 5%, low rates drove a number of credit union members to refinance their homes.  First mortgage originations in 2009 in Ohio totaled $1.66 billion versus $1.1 billion in 2008, an increase of 51.3%.  First mortgages outstanding grew 4.2% to $23.95 billion, all despite a continued weaker than usual housing market.

Total delinquency rose to 1.42% in December, up .10% during the 12-month period.  However, Ohio credit unions remain below the Ohio bank average of 3.26%. 

The average Ohio credit union has 6,748 members, $51.82 million in assets, and $31.73 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 393 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.