Pennsylvanians Increase Use Of Credit Unions

1/8/2010 HARRISBURG — While the financial services marketplace was turbulent in 2009, there was one bright spot … credit unions.  Credit unions in the Commonwealth of Pennsylvania have not only weathered the storm, but have thrived during it. 

Throughout 2009, credit unions continued to grow in assets, loans, savings, and members.  Third quarter data collected by the National Credit Union Administration, demonstrates that credit unions in Pennsylvania increased in all major areas: 13 percent in assets, 10 percent in loans, 15 percent in savings, and increased membership by 2 percent according to Pennsylvania Profile, published quarterly by the Pennsylvania Credit Union Association (PCUA).

“The fall out from Wall Street has led many consumers to seek out financial institutions locally owned and operating within their communities,” says PCUA President/CEO Jim McCormack.  “With more than 500 credit unions located throughout the state, there is truly a credit union for every Pennsylvanian.”

Funds in all Pennsylvania credit unions are federally insured by the full faith and credit of the United States government through the National Credit Union Share Insurance Fund (NCUSIF) administered by NCUA to $250,000.  McCormack added, “It’s easy to find a credit union to join, just visit the online locator at www.iBelong.org.”

The Pennsylvania Profile, Third Quarter 2009, showed credit union membership in Pennsylvania grew 2.3 percent over a 12-month period ending September 30, compared to a national credit union growth rate of 1.6 percent.  Pennsylvania now has 3.5 million members in 556 credit unions and total membership in all 7,773 U.S. credit unions stands at more than 91 million strong.

Total assets in Pennsylvania credit unions grew to nearly $31 billion, up 13 percent from September 2008 figure of $28 billion.  Savings in Pennsylvania credit unions is $27 billion, up 15 percent from $24 billion in third quarter 2008, despite nearly double digit unemployment in the state.

New and used auto loans grew in the third quarter, with new auto loans increasing 2.5 percent, faster than the national average, which fell 0.1 percent, and double the growth reported in the third quarter of 2008 by Pennsylvania credit unions.

Loans grew faster than savings during the third quarter, pushing the loan-to-savings ratio up to 69.4 percent, from its lowest point in the second quarter of 67.4 percent. Certificates of Deposit, IRAs, and money market shares grew significantly more than the national rate.

“Credit unions overall offer better savings rates and lower fees than traditional providers,” said McCormack.  “Many credit unions offer a full range of services from credit and debit cards, CDs, mortgages, home equity loans, ATMs, vehicle loans, along with the basics, such as checking and savings accounts.”

Credit unions are financial cooperatives that provide affordable financial services to help their owner/members.  The Harrisburg-based Pennsylvania Credit Union Association is a trade association that provides legislative, promotional, educational and operational support for nearly 500 credit unions in Pennsylvania.  These credit unions have assets in excess of $31 billion and serve more than 3.5 million members.  For additional information about credit unions or to find a credit union near you, visit www.iBelong.org
 

Editor’s Note: To view of full report of Pennsylvania Profile, please contact the Association.

# # #