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Southeastern credit unions post strong 2Q numbers

The major upward trend of credit unions in Alabama and Florida continued into the second quarter. Credit unions in Florida added $310 million in assets in the second quarter to set a new record of $45.6 billion in assets. Alabama credit unions added $129 million in assets in the quarter to also set a new record of $17.6 billion in assets. Combined, the two states added 46,000 new members in the quarter. But a closer look at those numbers tells a great story. For the past four quarters, Florida credit unions have added 143,000 new members to set a record of 4.68 million members. Alabama credit unions have added 51,000 members in the past four quarters for a record 1.81 million members.

“Since the third quarter of 2011, credit unions in Alabama and Florida have been growing at a strong rate that is higher than the national credit union average,” said LSCU President/CEO Patrick La Pine. “The growth can be attributed to the overall awareness of credit unions being raised. Individual credit unions are doing a great job of promoting their brand, while the League’s Statewide Image Campaign and the consumer’s attitudes toward big banks have been contributing factors.”

Credit unions worked more with small businesses in the second quarter by issuing more member business loans. In Alabama, member business lending jumped over four percent, which was higher than the national credit union average and nearly double the growth rate over the past two years. In Florida, member business loans grew three percent in the second quarter, right at the national credit union average, but three times higher than two years ago.

The loans credit unions are making also continue to be much better. Delinquencies and net charge offs are lower once again in the second quarter. In Alabama, delinquencies have been reduced by 28 basis points (bp) over the past two-and-a-half years, while in Florida delinquencies have been reduced by 71bp during the same time frame.  

“Delinquencies and net charge offs are a direct correlation to how well the credit union member can pay back the loan,” said La Pine. “Credit unions are seeing a slight increase in loans, which is good since loan growth has been flat the past two years. More members are beginning to buy bigger ticket items.”

Alabama and Florida credit unions saw slight growth in used automobile and first mortgage loans. A look deeper inside these numbers show that Alabama credit unions recorded a positive growth in auto lending for the first time since the third quarter of 2009. In Florida, it was the first positive gains since 2007. On the real estate side, Alabama credit unions continued a positive upward trend dating back to the fourth quarter of 2010. In Florida, it was the first positive quarter since the second quarter of 2009.

Credit union members are also saving at a brisk clip. Credit unions in Alabama and Florida are seeing member savings growth of five percent, which is right at the national average. You can see some of the press coverage of the second quarter statistics in the LSCU Press Room.

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