Hurricane-Affected Credit Unions Show Resilience in 2005

Credit unions all along the Gulf Coast region were affected to some extent by Hurricanes Katrina and Rita. Find out how their financial performance has been affected and where they stand at year-end.

 
 

In September 2005, the NCUA reported that there were 70 credit unions in Louisiana and Mississippi that were not operational after the initial effects of Hurricane Katrina. Between that time and December 31, 2005, 68 of these credit unions resumed normal operations and two of them merged into larger credit unions in their area. We can expect more of these credit unions to merge as the NCUA has already announced that they are looking for larger credit unions in the area to acquire small credit unions that cannot continue to operate as a result of the hurricane. Nevertheless, here are some key growth statistics on the continuing 68 credit unions as of December 2005.

Average Growth Performance for Credit Unions Affected by Hurricane Katrina

Data as of December 31, 2005

12-Month

Quarterly

Growth

Growth

Assets

3.76%

2.73%

Shares

3.26%

3.76%

Loans

3.46%

1.97%

Members

-5.81%

-4.33%

There were many other credit unions that were affected by Hurricanes Katrina and Rita along the coast lines of Louisiana, Mississippi, Alabama and Texas. Many of these credit unions took losses on their lending products, but they also had strong growth in assets and member deposits. "Our growth in share deposits has been three-fold" said Ricardo Miron, President of Greater New Orleans Federal Credit Union ($116.0M in assets, Metairie, LA). "We've received a large number of deposits from insurance funds and checks that members received from the Federal Emergency Management Agency (FEMA)." He continued, "A lot of our members are employees of BellSouth and received larger paychecks from working overtime after the hurricane struck".

Other credit unions in the region had similar experiences as the top 10 credit unions in 12-month share growth for credit unions with assets between $100-250 million were all from coastal areas affected by hurricanes.

Top 50 Credit Unions in 12-Month Share Growth

as of December 31, 2005 for credit unions $100 - $250 million in assets

12-Mo.

12-Mo.

12-Mo.

12-Mo.

Share

Core Deposit

CD

Member

$Total

Rk

Credit Union

St

Growth

Growth*

Growth

Growth

Assets

1

The New Orleans Firemens

LA

57.74%

91.71%

-5.02%

-1.08%

$111,713,650

2

Greater New Orleans

LA

48.96%

71.89%

-14.08%

5.53%

$116,003,077

3

Jefferson Parish School

LA

44.68%

69.19%

-0.49%

0.93%

$150,712,664

4

Navigator

MS

41.39%

42.98%

49.40%

11.65%

$236,749,342

5

Shell New Orleans

LA

38.68%

40.09%

35.51%

4.56%

$100,901,203

6

Singing River

MS

36.89%

46.89%

19.09%

17.03%

$136,578,223

7

Mobiloil

TX

33.47%

44.95%

6.59%

4.12%

$236,638,537

8

Louisiana

LA

32.61%

46.54%

8.88%

-6.05%

$103,196,700

9

RiverLand

LA

28.96%

46.04%

-10.89%

-2.84%

$120,579,702

10

Central Sunbelt

MS

27.00%

34.63%

17.17%

-0.86%

$104,767,983

*Core Deposit Growth includes Regular Shares, Share Drafts and Money Market Share Accounts

Source: Callahan & Associates' 2006 Financial Yearbooks

For more information on year-end financial highlights on America’s top-performing credit unions, check out our 2006 Financial Yearbooks.

 

 

 

Feb. 27, 2006


Comments

 
 
 
  • The subject matter is timely because the challenges on the asset side were expected in loan losses but with reduced loan demand what will they do with this "hot money"?
    Anonymous