eBrief: New Industry Annual Report Highlights Credit Unions’ Successes in 2009

Report to be presented to the White House to draw attention to industry’s service to ordinary citizens.


Callahan & Associates has created a first-of-its-kind industry publication, one that underscores credit unions’ strong performance in 2009, as well as their successful role in serving the American people during the nation’s economic malaise.

The Credit Union Annual Report, which includes a review of the industry, state-by-state summary information and Consolidated Financial Statement, will be presented to President Obama. Credit union volunteers and professionals are invited to sign a letter that will accompany the report to show their support and participation in the industry’s success and service.

“Credit is central to the economic well-being of an individual, a community and even a country”, said Chip Filson, President/Chief Executive Officer of Callahan. “Credit unions continued to lend throughout the financial crisis. With all the negative news about the financial industry, we believe it’s time Washington learns about credit unions’ excellent – incredible, really – results. Given the events of the last couple of years, credit unions have an important story of success to tell.”

 Jay Johnson, Callahan’s Executive Vice President, agrees. “We are doing this on behalf of the industry,” he said. “Credit unions all have their own stories at the local level, and as an industry, we want to help document how credit unions assist people in improving their financial status.”

Johnson says providing credit at a time when for-profit financial institutions cannot or will not meet market needs is a critical component of credit unions’ public policy covenant. “In a year in which loans outstanding at banks fell at the fastest rate since 1942, credit unions performed a countercyclical role in posting their highest loan-origination volume on record at $271.9 billion.”

Instead of just providing a compendium of credit union statistics, Callahan & Associates produced the Credit Union Industry Annual Report inside its 4th Quarter 2009 Edition of Credit Union Strategy & Performance (CUSP). The report also includes a timeline of key credit union legislative/regulatory events, peer-group performance and the “state of the states.”

Among credit unions’ good news, credit unions:

  • Granted nearly 20 million new and refinanced loans in 2009, a record-breaking $272 billion in funding. This represents a 7 percent increase over 2008, in contrast with loans granted by the banking industry, which dropped by 7 percent – the sharpest decline since World War II.
  • Made more than 38,000 loan modifications, totaling $7.3 billion. Our industry led the way in modifications, helping members find “breathing room” when their financial status was most vulnerable.
  • Were supported by members’ confidence in credit unions by adding more than $71.5 billion in savings. This represented a 10.4 percent increase and provided new money for other members to borrow.
  • Grew market share of auto lending to an all-time high of 22.7 percent in January 2009 and averaged 20 percent for the year, compared with 16.1 percent in 2008.  The “Invest in America” program benefited members and the auto industry as credit unions sold some 230,000 vehicles at reduced prices and generated more than $3.5 billion in credit union auto loans. 
  • Topped the nation’s largest banks in small-business lending. Credit unions made $9.7 billion in member business loans in 2009, 60 percent greater than that of JPMorgan Chase.  

“These results demonstrate credit unions’ ability to navigate through the worst economic environment since the Great Depression,” said Filson. “In the midst of the turmoil of 2009, credit unions turned in a year of remarkable performance.”

To learn more about the 2009 Annual Report on Credit Unions and add your name to the letter to President Obama, click here.