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Virginia-Based Credit Unions See Strong Loan, Member Growth in 2013

May 8, 2014 by Lewis Wood

Virginia's 166 not-for-profit, member-owned credit unions continued to see healthy increases in loans and new members in 2013, according to information from credit unions' federal  regulator, the National Credit Union Administration. Having emerged from the financial crisis and recession with healthy balance sheets, Virginia-based credit unions were well-positioned to be consumers' lender-of-choice once the economy rebounded.

CONTACT:
Lewis Wood
Vice President of Communication and Public Relations
800.768.3344, ext. 629
lwood@vacul.org 

Virginia's 166 not-for-profit, member-owned credit unions continued to see healthy increases in loans and new members in 2013, according to information from credit unions' federal  regulator, the National Credit Union Administration. Having emerged from the financial crisis and recession with healthy balance sheets, Virginia-based credit unions were well-positioned to be consumers' lender-of-choice once the economy rebounded.

"Consumers are finding they like credit unions' consumer-friendly loan products, superior service and fewer fees," said Virginia Credit Union League President Rick Pillow. "Virginia-based credit unions had a solid performance last year as members turned to us to meet their credit needs and to take advantage of our safe, federally insured options for savings."

A record-setting $52 billion in loans were originated by Virginia-based credit unions in 2013, a 14 percent increase over 2012's total. Aggregate loan balances jumped a healthy 10.8 percent in 2013, reflecting strong growth in first mortgages, new automobile loans and credit cards. Credit unions' aggregate loan portfolio was up 12 percent for the year thanks to the robust loan growth. The growth in first mortgages and credit card balances were the fastest seen since 2008.

Last year, the Commonwealth's credit unions originated almost 73,000 first mortgages worth $18 billion. At year-end 2013, Virginia-based credit unions held more than $30.7 billion in first mortgages.

Loans for new automobiles rebounded strongly in 2013, up 18.1 percent, with Virginia-based credit unions now holding $6.6 billion in new auto loans. According to Informa Research Services, a market research firm that tracks financial institution pricing, Virginia-based credit unions reported an average interest rate of 2.48% on new car loans in March 2014. In contrast, the state’s banks report an average rate of 3.72%. This difference in pricing means that the average Virginia consumer saves almost $993 over the life of a five-year loan financing a new $30,000 auto at a credit union rather than a bank.

The membership rolls at Virginia-based credit unions continued to balloon last year, with growth of more than 8 percent in 2013 – the fastest increase in 27 years. Total membership in Virginia-based credit unions eclipsed 8.4 million at year-end.

Owed to the large number of credit unions based in Virginia that serve the military and various federal agencies, members of Virginia-based credit unions are spread all across the globe. The number of credit union members residing in Virginia is estimated at 3.25 million.

Credit unions remain best-in-class for financial services and set the bar for member/customer satisfaction, according to major consumer satisfaction surveys, including the American Customer Satisfaction Index (ACSI).

About Virginia's Credit Union System
Virginia is home to 166 member-owned, not-for-profit credit unions, which boast a combined $99.2 billion in assets and 8.4 million member-owners. They hold more than $70.3 billion in loans and $76.6 billion in savings. Learn more about the benefits of credit unions and find a credit union you can join, by visiting www.quitthehit.com.

About the Virginia Credit Union League
During the past 80 years, the Virginia Credit Union League has helped organize, promote and protect Virginia's credit union system. The League's mission today is firmly focused on advocacy, compliance and regulatory assistance, education and professional development, and in providing business solutions that help credit unions serve their members. Learn more about the League by visiting www.vacul.org.

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