Well-Balanced Growth Across Ohio Credit Unions

Well-Balanced Growth Across Ohio Credit Unions


Well-Balanced Growth Across Ohio Credit Unions

Consumer loans up $380 million from last year; Net worth up 11.3%

Columbus, Ohio (Jan. 29, 2015) Consumer lending at Ohio credit unions grew 10.7% in a 12-month period according to the Ohio Credit Union Quarterly Performance Summary (3rd Quarter, 2014). Much of the consumer loan growth was found in new and used auto loans, which grew 18.9% and 6.4% respectively from September 2013 to September 2014. Ohio credit unions were better capitalized (11.6%) than local bank peers, and above the national credit union average of 10.9% as of September 2014.

“Credit unions offer a wide range of lending options to help Ohioans in all stages of life,” said Paul Mercer, President of the Ohio Credit Union League. “Whether it’s a small dollar loan to help you get by until the next paycheck or your first mortgages, credit unions have innovative and progressive products for your everyday needs. “

Consumer Auto Loans Continue Upward Growth

Consumer loans consist of any loan that is not a mortgage or business loan and in Ohio credit unions originated $3.9 billion in consumer loans, in the first nine months of 2014, up $380 million from the same period 2013. A majority of the increase came in auto originations. Ohio credit unions hold almost 42.5% of their loan portfolio in autos, compared to 31.9% nationally.

In aggregate, Ohio credit unions’ overall auto loan portfolio increased $686.9 million, up 11.3% over the previous September. New auto loans by Ohio credit unions held steady at 18.9%. Used auto loans grew 6.4% in Ohio, compared to 12.2% nationally.

Credit card loans, while just 5.4% of the loan portfolio, gained 4.4% to hit $862.9 million.

Mortgage Portfolio Expands as Credit Unions Hold More Real Estate

Mortgage lending has declined as interest rates rise from 2013. Nationally, credit unions saw first mortgage originations drop 29.8% for the first nine months of 2014. In Ohio, however, credit unions originated $1.5 billion in first mortgages, a decline of 19.9%. Other real estate originations were $2.9 million lower than during the first nine months of 2013, a year-over-year decrease of 0.92%.

Despite the decline in originations, the mortgage portfolio expanded by 4.6% in Ohio as credit unions held on to more of the loans than in 2013. In the first nine months of 2014, the state’s credit unions sold $566 million in first mortgages, or 36.7% of total first mortgage originations. This is down from 47% of originations at September 2013, still a higher percentage of originations than credit unions nationally, which sold only 32.6% of new originations. Therefore, nationally, the first mortgage portfolio rose at a faster rate of 9.2%.

Today, first mortgages make up just 33.2% of Ohio’s loan portfolio compared to the national share of 41.3%.


Pg. 2 – Ohio Credit Unions Continue to Grow

Revenue up for credit unions due to improved loan interest income

Year-to-date revenue for Ohio credit unions is up 0.1% to $864 million, as increased loan income offset declines in fee income and other operating income. Ohio’s total interest income increased 1.7% from September 2013 to September 2014. Year-over-year, average loan yields fell from 4.97% in September 2013, to 4.70% in September 2014. In spite of this decline, the 7.2% rise in balances was sufficient to grow loan income, rising 2.0% to $544 million.

At September 2014, the aggregate net worth ratio for Ohio credit unions was 11.3%, up 15 basis points from September 2013. Overall net worth increased 7.9% to $2.9 billion.

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 use a credit union. To find a credit union, visit


The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 330 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 2.78 million members. To learn more, visit