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LOANS OUTPACE SAVINGS AT CA CUs
updated 02/23/14 10:25 AM
Growth Positive For NV CUs
Loan growth in California outpaced savings growth in 2013—the first time that’s happened since 2007, according to preliminary fourth-quarter data from the Credit Union National Association. Meanwhile, loan growth in Nevada reached into the positive territory for the first time since 2007, posting a 0.6-percent increase.

Overall, California credit union loan portfolios grew by 2.8 percent in the fourth quarter, resulting in a 6.3 percent increase for the year. In contrast, savings balances increased by 0.32 percent in the fourth quarter, and by 3.7 percent in the year.

The 6.3 percent full-year loan portfolio increase was the largest percentage increase California credit unions have experienced since 2006. Auto lending continued to drive overall loan growth results in 2013, reflected in a 22-percent full-year jump in new vehicle loans and a 13.9-percent increase in used auto loans. Personal unsecured loans grew by 11.8 percent in the year; first mortgages increased 6.9 percent while business loans grew by 5.4 percent and credit cards by 5.1 percent.

Total memberships in the state’s credit unions grew by 1.23 percent in 2013 – the strongest increase since 2007. In contrast, the Census Bureau reports the state population grew by 0.88 percent in 2013.

In Nevada, credit unions saw another noticeable uptick in savings, with a 0.5-percent increase in the fourth quarter of 2013, finishing the year with a 3.2 percent increase. Used auto, unsecured personal loans, and credit cards finished the year 2013 with increases of 13.6 percent, 5.4 percent, and 4.8 percent, respectively.

On the savings side, the state’s credit unions reported regular savings account balances grew by 9.0 percent at year-end 2013, while checking account balances grew by 0.9 percent and money market balances grew by 2.0 percent year over year.

“The jump in auto lending in California showed that the pent-up demand among consumers pulled them into dealer showrooms as well as credit union branches,” said California and Nevada Credit Union League's Vice President and Chief Economist Dwight Johnston. "The improved economic outlook also was demonstrated in the strong 2013 lending results in nearly every key loan category—from personal unsecured loans and first mortgages to business loans and credit card usage. Improvement in the California job market and rising home values resulted in greater confidence on the part of borrowers.”

“Deeper analysis of the lending picture in Nevada points to an increase in demand being largely driven by mid-level consumer purchases, mostly used auto, unsecured personal loans, and credit cards,” Johnston added. “These three categories provided strong enough growth to push the overall loan growth into positive territory in the fourth quarter. After lagging the recovery in the rest of the U.S., Nevada began what appears to be a sustainable rebound in jobs and construction in the second half of 2013.”

                           
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LEADERS ENGAGE WITH STATE LAWMAKERS updated 04/15/14 09:44 AM
Card Security a Hot Topic
Credit union professionals and volunteers took a stand for their members in Sacramento from April 7-8 during the California Credit Union League’s 2014 Government Relations Rally (GRR)—an event that attracted more than 75 attendees and helped build relationships with state legislators.

CO-OP ANNOUNCES SHAREHOLDER DIVIDEND updated 04/14/14 01:37 PM
Patronage Pool of $30.5 Million
CO-OP Financial Services has announced a shareholder dividend pool of $30.5 million for 2013—a 17 percent increase from 2012. Since becoming a credit union-owned cooperative in 1996, CO-OP’s total shareholder patronage has been $284.8 million.

DBO REPS ADDRESS 'CUOLI' INVESTMENTS updated 04/14/14 01:05 PM
State CU Update Given
California Department of Business Oversight (DBO) Commissioner Jan Owen and Deputy Commissioner of Credit Unions Erick Orellana gave attendees an overview of the department during the California Credit Union League’s 2014 Government Relations Rally (GRR) last week in Sacramento and welcomed questions from attendees.

CONGRESSMEN CONCERNED OVER RBC RULES updated 04/09/14 01:18 PM
Questions Arise During Hearing
Reps. Ed Royce, R-CA, and Brad Sherman, D-CA, questioned National Credit Union Administration (NCUA) General Counsel Mike McKenna on the effectiveness of the NCUA's proposed risk-based capital rule during a House Financial Services Committee hearing last week.