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Alabama and Florida credit unions have strong quarter

Credit unions in Alabama and Florida kicked off 2014 with a strong first quarter. The 278 collective credit unions in the two states added $2.2 billion in new assets and 100,000 new members. When broken down by state, Alabama’s 120 credit unions added $479 million in new assets for a record $18.8 billion and 9,000 new members for a record 1.88 million members. Florida’s 158 credit unions added $1.8 billion in new assets for a record $49 billion in assets and 91,000 new members for a record 4.8 million members.

Credit union members spent more time engaging with their credit unions. In Alabama, the credit unions added $23 million in new loans driven by used auto lending. Alabama’s credit unions are making more than eight percent more used auto loans than the national credit union average. They are also making more than four percent more than the national credit union average on overall auto loans. In Florida, credit unions added $339 million in new loans with $48 million coming from new small business loans. Florida’s credit unions also are making more than three percent more auto loans than the national credit union average.

“We can see that members are doing more than just joining a credit union,” said LSCU & Affiliates President/CEO Patrick La Pine. “The loan growth shows that more small businesses are getting help from their credit union, more families are able to upgrade their vehicle, and families continue to save money.”

Families are saving more of their money with a credit union. Alabama members saved $429 million in the first quarter, while Florida members saved $1.5 billion. Credit union members are also continuing to pay off their loans. The delinquency and charge-off rates are dropping in both states. Alabama’s credit unions delinquency rate fell 30 basis points (bps) to just over one percent and the net charge-off rate is .56 percent, which is right at the national credit union average. Florida’s credit unions have seen their delinquency rate cut in half in five years. Delinquencies improved another 33 bps in the first quarter to drop to 1.29 percent. Net charge-offs are also cut in half over the past five years to .77 percent which is just 25 bps above the national credit union average. This is a dramatic improvement since 2011.

Credit unions are local with the workforce all coming from within the communities where they are located. Alabama credit unions added 52 new fulltime employees in the first quarter and have added nearly 300 new fulltime employees since 2011. In Florida, 77 new fulltime employees were added to payrolls in the first quarter and 836 new fulltime employees have been hired since 2011.

Read more in the Miami Herald or Birmingham Business Journal or al.com.

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