Pressroom > News Release:
Ohio CUs reach out to homeless man
Contact: Patrick Harris
Director of Media Relations
Ohio Credit Union League
Ohio Credit Unions Add More Than 34,000 Members in 3rd
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.”
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.
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.
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%.
Balance Sheets Stronger than National Averages
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
and fill in the prompted fields.
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