Virginia's Credit Unions Reach Membership Milestone

LYNCHBURG, VA (10/22/2010)(readMedia)-- As credit unions worldwide celebrate International Credit Union Day on Oct. 21, credit unions in Virginia are celebrating another milestone in membership growth. Membership at Virginia's 189 not-for-profit, member-owned credit unions topped 6.75 million as of June 30, 2010, representing an increase of almost 550,000 members since year-end 2008.

The growth has been fueled by a number of factors: credit unions' marketing efforts, positive media coverage for credit unions' consumer-friendly products and services, and the nonprofit campaign "Move your Money," which encourages consumers to switch from big Wall Street banks to local financial institutions, like credit unions. Owed to their strength and financial stability, federal regulators have also allowed Virginia-based credit unions to merge with struggling credit unions in other states, which has further contributed to the increase in membership.

"Our message to consumers has been simple: 'What are you waiting for?'" said Virginia Credit Union League President Rick Pillow. "Millions of consumers are already enjoying better rates and superior service at Virginia's member-owned credit unions. While big banks seem to shuffle from one crisis to the next, Virginia's credit unions continue to chug along, offering members a federally insured haven for their accounts and loans to help them achieve their dreams."

For the year ended June 30, 2010, credit union membership in Virginia grew 5.9 percent, compared to the national average of 0.9 percent. Membership growth for calendar year 2009 was 7.1 percent; in 2008 it was 4.8 percent.

Savings balances at Virginia-based credit unions increased 8 percent in the year ending June 2010, with money market accounts leading the charge as balances ballooned by 26 percent for the year. Balances in share draft/checking accounts also grew at a steady pace, with growth topping 15 percent during that same period.

And even as America's households focus on paying down debt, Virginia's credit unions are still seeing solid loan growth in many categories. With better rates and friendlier terms on credit cards than leading banks, credit unions have continued to see steady growth in their card portfolios, with growth topping 8.4 percent for the year ended June 2010. Lending for pre-owned vehicles was also strong - 6.3 percent growth for the year ended June 2010.

Leading all lending categories was member business loans, which help members finance the startup, operations or expansion of their small businesses. With even the most credit-worthy small business owners struggling to find financing at banks, many business owners are increasingly turning to their credit unions for financing.

Member business lending grew by 30.3 percent for the year ended in June 2010, after posting similar growth rates for calendar years 2007 through 2009. Virginia's credit unions now boast some $622 million in member business loans, and are working in Congress to change a 12-year-old law that severely limits credit union member business lending, all in an effort to help boost the economy without the need of taxpayer assistance. Rep. Gerry Connolly (D-11th) has taken a leadership role in this effort, having supported credit unions by signing on as a co-sponsor of legislation to raise credit unions' member business lending cap.

A number of Virginia-based credit unions are also enrolled as lenders with the U.S. Small Business Administration. Credit unions are able to fund loans through the SBA's popular 7(a) and 504 loan programs.

Want to learn if you're eligible to join one of Virginia's member-owned credit unions? Visit the Find A Credit Union website at http://www.findacreditunion.com for our easy-to-use searchable database of credit unions.

Learn more about Virginia's credit unions by visiting http://www.vacul.org, home of the Virginia Credit Union League, a statewide trade association dedicated for the past 75 years to promoting, serving and protecting Virginia's credit unions.