Credit Unions Reporting Growth in All Categories

LOCAL CREDIT UNIONS ARE SHOWING FINANCIAL GROWTH

New York’s credit unions continue to show across-the-board growth in all fundamental categories, including membership, lending, assets and savings through the 2nd quarter of 2012. In so doing, they have exceeded the national averages in each of those areas as well.

Membership growth atNew Yorkcredit unions over the past year was 3.7 percent, 1.5 times higher than the national average of 2.3 percent at the end of June. In the second quarter alone,New Yorkcredit unions added almost 52,000 members.

New Yorkcredit unions are also continuing to meet the lending needs of their members, with loan originations increasing 24.9 percent from the first half of 2011 to $8.5 billion. This growth was primarily fueled by first mortgage originations, which rose by $1.2 billion over the first half of 2011.

“In an industry where other financial institutions are adding and increasing banking fees, these findings show how well-positionedNew Yorkcredit unions are to fill the needs of those seeking value,” said William J. Mellin, president/CEO of the Credit Union Association of New York. “As economic challenges continue to present themselves to New Yorkers across the state, I expect credit unions’ growth trend will continue.”

Other highlights from the recent Credit Union Performance & Trends Report released by Callahan & Associates for the period include:

  • Business loans on the books ofNew Yorkcredit unions increased 12.9 percent from June 2011 levels, and member business loan originations totaled more than $1.3 billion in the first six months of 2012.
  • Both used and new auto loans increased annually atNew Yorkcredit unions. New auto loans rose by 5.1 percent (or $129.4 million), while used auto loan balances rose 4.9 percent annually, an increase of $161.9 million.
  • New Yorkcredit unions had annual outstanding loan growth of 8.2 percent in June 2012, compared to national growth of 3.1 percent over the same time period.
  • Delinquency atNew Yorkcredit unions decreased 2 basis points from June 2011, and the overall rate of 1.2 percent is in line with the national credit union average and below the local bank average. The net charge-off rate fell 4 basis points from June 2011. At 43 basis points, it remains well below the national credit union average of 76 basis points.
  • The average member relationship (the outstanding combined loan and savings balances per member, excluding member business loans) atNew Yorkcredit unions also increased, up to $17,410 at the end of the second quarter.
  • Savings balances atNew Yorkcredit unions increased by 9 percent, faster than the national average of 7 percent. Regular savings, money market accounts and checking accounts all grew at a double-digit annual pace.
  • Capital levels remain high atNew Yorkcredit unions, at 11 percent of assets. This is a higher level thanNew Yorkbanks and thrifts, as well as credit unions and banks nationwide.

The Credit Union Association of New York has served as the trade association for the state’s credit unions for 95 years. New York credit unions have assets of more than $57 billion and serve 4.6 million members. To learn more about the Association, visit www.cuany.org.

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