New York State credit unions again posted growth in membership, lending, assets and savings that exceeded national averages in the second quarter, according to data and an analysis by a research firm that was reported by the industry’s trade group in the state.
New York credit unions increased their membership by 3.7 percent in the second quarter of 2012 over the same period a year ago, adding almost 52,000 members just in the three months of this year from April to June, according to the data from Callahan & Associates. The growth rate over the past year was more than 1.5 times higher than the national average of 2.3 percent.
Loans grew 24.9 percent in the first six months of the year to $8.5 billion, led by first mortgage originations that rose by $1.2 billion over the first half of 2011. New and used auto loans also rose, by 5.1 percent, or $129.4 million, for new car loans and by 4.9 percent, or $161.9 million, for used car loans. And business loans rose 12.9 percent from June 2011, while credit unions made more than $1.3 billion in new “member business loans” in the first half of 2012.
In June alone, loans grew 8.2 percent, more than doubling the national rate of 3.1 percent.
Similarly, savings balances rose by 9 percent, faster than the national average of 7 percent, with regular savings, money market accounts and checking accounts also posting double-digit rates. And the average size of a member relationship, which includes both loan and savings balances except for business loans, rose to $17.410 at June 30.
“In an industry where other financial institutions are adding and increasing banking fees, these findings show how well-positioned New York credit unions are to fill the needs of those seeking value,” said William J. Mellin, president and CEO of the Credit Union Association of New York, the trade group for the member-owned nonprofit institutions with more than $57 billion in assets and 4.6 million members. “As economic challenges continue to present themselves to New Yorkers across the state, I expect credit unions’ growth trend will continue.”
Meanwhile, the percentage of bad loans fell from a year ago, while remaining both in line with the national average and below that of local banks. Losses also fell from a year ago, while capital levels remained higher than that of New York’s banks and savings banks, as well as both credit unions and banks nationwide.