Virginia's Credit Unions: Almost 1 Million New Members Since 2005

LYNCHBURG, VA (11/23/2009)(readMedia)-- Consumers are turning to Virginia's credit unions in record numbers, according to data collected by the National Credit Union Administration, credit unions' federal insurer and regulator. Approximately 170,000 consumers opened accounts at Virginia-based credit unions between July 2008 and June 2009; almost 1 million new members have been added since year-end 2005.

Membership for Virginia's credit unions stood at 6.3 million in June 2009, an estimated 3 million of whom reside in the commonwealth. A number of military and former military credit unions based in Virginia count members all across the globe.

Member-owned credit unions in Virginia also originated more than 622,000 loans worth some $17.3 billion during the first half of 2009, according to data gathered from the National Credit Union Administration.

"Virginia's credit unions are still lending, thanks to strong capital and the fact they avoided the risky lending practices now plaguing so many other institutions," said Virginia Credit Union League President Rick Pillow. "Consumers are also discovering credit unions are the smart choice for a financial partner, as families seek to cope with the challenges of today's economy. With better rates and fewer fees, Virginia's credit unions are saving their members an estimated $869 million annually compared to the cost of loans and services at other financial services providers."

According to recent data, Virginia's credit unions made more than $7.73 billion in 1st, 2nd and other mortgage-related loans during the first six months of the year. 1st mortgage lending saw an annualized growth rate of 17.7 percent for June 2009. The growth rate was 36.4 percent for calendar year 2008 and 33.3 percent for 2007.

Although there has been less consumer demand nationwide for loans on new automobiles, Virginia's credit unions still reported some $5.8 billion in such loans on their books as of June 30 of this year. Outstanding loans for pre-owned automobiles stood at a little less than $6 billion as of June 30, an almost $300 million increase since December 2008.

Virginia's credit unions also reported increased member business lending, filling an important need as small businesses seek credit to grow and sustain their operations and provide a boost to the economy. Member business loans account for almost $513 million of Virginia credit unions' combined loan portfolio, but that number is rising. The annualized growth rate for member business lending hit 48.1 percent as of June 2009. A bill now pending in Congress could open the door for more small businesses seeking credit through credit unions, by raising a restrictive cap on member business loans.

"Virginia's credit unions remain a safe harbor for their members' savings and other accounts, despite the economic woes," said Pillow. "With the added peace of mind of knowing member savings and checking accounts are federally insured to at least $250,000, there's no better time to be a credit union member."

Discover the "Credit Union Difference" for yourself. Visit www.findacreditunion.com to search for a credit union you may be able to join.

Organized in 1934 and based in Lynchburg, the Virginia Credit Union League is the statewide trade association representing the 192 member-owned, not-for-profit credit unions headquartered in the commonwealth. The League's many services include advocacy, training, and a wide range of informational and operational products and services. Learn more online at www.vacul.org.