FOR IMMEDIATE RELEASE
Ohio Credit Unions Serve 2.76 Million Members
Ohio credit unions added nearly 33,000 new members;
Loan originations increase 35%
Columbus, Ohio (July 7, 2014) According to the latest Ohio Credit Union Quarterly Performance Summary, Ohio credit unions added nearly 33,000 new members over the past 12 months, an increase in membership of 1.2% from March 2013. Credit unions in Ohio now serve 2.76 million members. As loans and shares continue to increase in Ohio, so too has the average member relationship, up to $13,095 per member at March 31. This metric, representing the total dollar amount of loan balances (excluding member business loans) and deposits per member, increased 2.8% from the $12,736 reported in March 2013.
“Credit unions offer products and services that benefit members, not shareholders, and the membership growth statistics clearly demonstrate that consumers realize this more than ever,” said Paul Mercer, Ohio Credit Union League President. “From an economic standpoint, it is encouraging to see an increased demand in consumer loans, which indicates Ohioans are again becoming comfortable enough to start to use credit. We haven’t experienced this in the last few years, with consumers focused on paying down debt. If they now need loans, credit unions are ready to serve their needs.”
Loan Originations Driven by Consumer Loans; Renewed Growth in Auto Loans;
Through the first three months of 2014, credit unions are reporting strong loan growth, largely driven by accelerating consumer lending activity. Vehicle sales have returned to pre-recession levels with total sales reaching levels not seen since 2007. This has translated to growth in the national credit union auto portfolio. Nationally, auto loan balances increased 12.2% annually from March 2013. Credit unions in Ohio have historically reported above-average auto loan growth and balances rose by 12.1% annually, similar to national levels. Growth was reported in both new and used auto loans. Used auto loan balances in Ohio increased 7.8% annually, as new auto balances rose 19.3% during the same time. Auto loans now make up 41.4% of the loan portfolio. Credit card balances increased as well, up by 5.1% to $821.7 million at March 31, 2014.
Quarterly Performance Summary
As interest rates rise and the mortgage market slows, consumer loans are playing an increasingly important role and leading balance-sheet loan growth at credit unions, through the first three months of 2014. Notably, Ohio credit unions are posting strong annual loan growth figures and significant decreases in delinquency and charge-offs. The strength of the loan portfolio and a decline in operating expenses has established a strong business model for years to come.
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Pg. 2 – Ohio Credit Unions Adding Members; Increasing Loans
Business Loan Balances Increase 18%; Small Business Lending Slows
Business loan balances in Ohio grew 18.0% from the previous March, faster than the national average of 12.5% during the same period. Outstanding business loan balances stood at $619.4 million as of March 31, 2014.
However, business loan originations decreased from levels reported in the first three months of 2013. During the first three months of 2014, Ohio credit unions originated $35.3 million in business loans, down 8.2% from the $39.8 million in originations reported during the same period in 2013. This growth is lower than the 0.8% national growth of member business loan originations.
Although it represents just 4.1% of the Ohio loan portfolio, member business lending is becoming an increasingly important part of a credit union’s suite of products. At March 31, 111 of Ohio’s 336 credit unions reported outstanding business loan balances; 12.5% of credit unions reported originating a business loan in Ohio in the first three months of the year, up slightly from the 12.4% reported in March 2013. This is below the national average, where 15.8% of all credit unions originated a business loan, primarily due to Ohio having a higher concentration of smaller credit unions which are less likely to offer business loans.
Ohio Credit Union Count Falls by Two
During the first three months of 2014, a total of two credit unions underwent mergers in the state of Ohio. The current number of credit unions in the state stood at 336 as of March 31.
What is a Credit Union?
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.
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The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 336 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 2.76 million members. To learn more, visit www.aSmarterChoice.org.