Home > Pressroom > News Release: First quarter growth by Ohio CUs

 

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

 Business Loan Originations by Ohio Credit Unions Grow More than 20%;

Number of Credit Union Members in Ohio Approaching 3 Million;

 Loan Delinquencies Decline during Latest 12-Month Statistical Period

Columbus, Ohio (July 20, 2011) Credit unions in Ohio posted a strong first quarter financial performance, in-line or better than national credit union trends, as financial institutions operate within a more “normal” economic environment, according to the Ohio Credit Union League’s (OCUL) Quarterly Performance Summary. According to the report, annual growth figures for assets, shares, and loans through the first quarter of 2011 all exceed or are similar to national averages, with member business lending (MBL) origination boasting a $23.7 million gain (20.1%) from March 2010 to March 2011.

“Growing, progressive, and modern is how Ohio credit unions are best described today,” said Paul Mercer, OCUL President. “Despite a difficult economy and regulatory pressures, Ohio credit unions are thriving by creating financial products and services designed to help members, and member businesses, succeed. This model has worked well for 75 years, and will continue to benefit our state’s nearly three million members.”

MBL Originations, Balances Grow; Credit Unions Look for Greater Lending Authority
Small business lending is becoming an increasingly important part of a credit union’s suite of products. During the first quarter, Ohio credit unions originated $28.4 million in business loans, up from the $23.7 million reported during the first quarter of 2010. As of March 31, 2011, 101 of Ohio’s 384 credit unions reported outstanding business loan balances, totaling $386.6 million. Business loan balances in Ohio grew 8.3% from the previous March, which is faster than the national average (6.4%) during the same period.

“Ohio small businesses are in need of credit to help them sustain, grow, and create jobs. Credit unions are in a strong position to lend, and have embraced the need,” said Mercer. He continued, “With Congressional help, we can do more,” referring to legislation in both the U.S. House of Representatives and Senate that would extend greater small business lending authority to credit unions.

First Mortgage Originations Climb; Auto Lending Stable; Delinquency Rates Decline
Ohio credit unions originated $329 million in first mortgages in the first three months of 2011, up 33.4% from the same time period in 2010. The new originations propelled outstanding first mortgages 5.7% to $4.2 billion at the state’s credit unions. Year to date, U.S. credit union first mortgage loan originations increased 12.7% from March 2010, with Ohio credit union originations ticking higher at 14%, a $1.2 billion increase over the previous year.

Credit unions in Ohio have historically reported above-average auto loan growth and have avoided the large declines experienced nationally, as balances rose by 1.3% annually. Similar to national trends, growth was reported exclusively in the used auto loan portfolio. Used auto loan balances in Ohio increased 6.6% annually, as new auto balances fell 6.7% during the past 12 months.

Asset quality in Ohio remains strong as the delinquency rate fell to 1.21% from the reported 1.36% in March 2010. Delinquency in Ohio remains well below the national average of 1.63%. Credit card delinquencies have declined 39 basis points over the last 12 months to 1.33% as of March. Credit card balances also posted growth during the year, as balances increased 3.2% annually to $722 million as of March 2011.

Membership at Ohio Credit Unions Continues Growth Trend
Credit unions in Ohio added an additional 30,749 members over the last 12 months, growing membership by 1.2% to 2.69 million members. The growth rate was more than double the national average of .56%. The first quarter statistics mark the ninth straight quarter in which Ohio has seen membership growth, following years of relatively flat growth. 

Revenue Impacted by Historically-Low Interest Rate Environment
Credit unions in Ohio and nationally have seen total revenue slide over the past year due to the historically-low interest rates. Total revenue for Ohio credit unions fell 2.7% to $283 million during the first quarter. However, Ohio credit union economic indicators remain positive overall, with capital levels at 10.93% on average, which is higher than Ohio banks and thrifts, as well as credit unions and banks nationally. 

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.aSmarterChoice.org, 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 384 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.