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

Ohio Credit Unions Add More Than 34,000 Members in 3^rd Quarter;
Growth Rate Outpaces Nations Credit Unions

Continued Shift in Consumer Mindset Leading to Recent Surge  

Columbus, Ohio (January 20, 2011) For a seventh consecutive quarter, Ohio credit unions recorded gains in membership, netting 34,547 members during the last 12 months (Sept. 2009 – Sept. 2010) according to the latest Ohio Credit Union Quarterly Performance Summary.  The 1.3% increase during the 12 month stretch nearly triples the rate at which credit unions across the country added new members (.48%) during the same time period.  Analysts attribute the growth to the continuing consumer shift from investing long-term to addressing immediate financial concerns.

“The recent trend has been for consumers to consolidate, pay off debt, and focus on savings growth rather than incurring additional debt,” says Dave Fearing, Senior Vice President of Credit Union Support for the Ohio Credit Union League.  “As a result, credit unions have seen an increase in deposits as consumers look to gain the most out of their money through credit unions, which traditionally offer a higher rate of return.  Consumers are also attracted to credit unions’ lower rates on credit cards and consumer loans ions, which helps them to pay off debt quicker.”

Fearing’s analysis is supported by the Quarterly Performance Summary, which shows share balances at Ohio credit unions topping $18.1 billion in Sept. 2010, an increase of 6.2% from Sept. 2009.  Money Market balances grew the fastest, up 16.8% over the last 12 months.  Share deposits saw the largest dollar increase, adding $1.1 billion during the 12-months.  Additionally, the average member relationship, or the total dollar amount of loan balances and deposits per member, increased 2.1% from $11,112 in Sept. 2009 to $11,346 in Sept. 2010.

Lending to Small Businesses Continues Growth
Member business lending continues to be the fastest-growing loan category among Ohio’s credit unions.  As of September, 95 of Ohio’s 390 credit unions reported outstanding business loan balances, an increase of 22.6% over the previous September.  Member business loan balances increased from $333 million to $383 million during the 12 months, a 15% increase that outpaces the national credit union average.

Quarterly Consumer Lending Growth Turns Positive
Credit unions in Ohio have seen increased loan activity in the second half of 2010.  In the third quarter alone, credit unions originated more than $1.4 billion in new loans, up 18.4% from activity in the second quarter.  The largest driver of the increase was a 58.6% jump in quarterly first mortgage originations, driving the Sept. 2010 total loan portfolio up 1.3% from June 2010.

While balances are up on a quarterly basis, annual loan growth has turned negative.  Balances are down 1.5% at credit unions nationally, while credit unions in Ohio saw their loan portfolio contract .36% during the 12 month stretch.

The driver of the decline in balances comes from the auto loan market.  While Ohio credit unions have historically reported above-average auto loan growth, and have avoided declining trends nationally, auto loan balances fell 2.0% in 12-months.  Overall, used auto loans actually increased 5.1%, while new auto loans decreased 11.7% from Sept. 2009 to Sept. 2010.

Credit card balances grew 6.58% at Ohio credit unions during the 12-months, nearly doubling Sept. 2009’s growth rate of 3.5%.  

Credit Union Balance Sheets Stronger than National Averages
Ohio credit union economic indicators remain positive overall, with capital levels at 11.7% on average, which is higher than Ohio banks and thrifts, as well as credit unions and banks nationally.  Asset quality in Ohio remains strong as the delinquency rate fell slightly to 1.34% in Sept. 2010 from 1.37% in Sept. 2009.

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, visit www.FindACreditUnion.com, 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 390 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 2.69 million members. To learn more, visit www.OhioCreditUnions.org.