2001 Is Banner Year for Credit Unions Despite Economic Slump

America’s 10,199 credit unions posted incredible results in 2001 despite a declining economy and the impact of the terrorist attacks. Although the number of credit unions declined by 340, assets crossed the $500 billion mark for the first time as the fastest growth rate in 15 years, 14.1%, propelled total assets to $509.6 billion. Shares, investments and loans also experienced growth throughout the year.

 
 


America’s 10,199 credit unions posted incredible results in 2001 despite a declining economy and the impact of the terrorist attacks. Although the number of credit unions declined by 340, assets crossed the $500 billion mark for the first time as the fastest growth rate in 15 years, 14.1%, propelled total assets to $509.6 billion. This meant the average credit union asset size at year-end reached $50.0 million.

While membership reached 80.7 million on 2.8% growth, existing members were the driving force behind the $61.9 billion increase in shares. Share balances at year-end 2001 totaled $444.1 billion on 14.7% growth, with the average share balance rising from approximately $4,900 to $5,500.

Investments received the majority of the deposit influx, rising 28.3% to $159.8 billion. Loans rose 6.7% to $327.6 billion primarily on increases in first mortgage and used auto loans. Capital experienced good growth at 9.0%, but the robust asset growth led to a decline in the net worth to assets ratio of 120 basis points to 10.8%, still strong by historical standards.

With loan growth unable to keep pace with share growth during the year, the loan-to-share ratio declined 5.6 percentage points to 73.9%. The tight liquidity that characterized the industry at year-end 2000 as this ratio reached a 20-year high had been eliminated by mid-year 2001 as members turned to the safety of insured deposits at their credit union after the downturn in the stock market.

How Well Did Your Credit Fare in 2001?
Get all the 2001 year-end credit union financial results in Callahan's Credit Union Financial Yearbook. Available in three volumes depending on asset range, each volume features top credit union performers in areas such as loan growth, share growth, or member growth as well as 2-year profiles on every credit union in that asset grouping. Click here to find out more about the Yearbook.

 

 

 

 

March 18, 2002


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