ILWU Credit Union’s ($71 million, Wilmington, CA) 28% increase in assets since third quarter 2004 places it among the top 200 credit unions nationally in asset growth, according to September 2005 data. The Wilmington, CA credit union has experienced strong growth on both sides of their balance sheet.
ILWU credit union’s loan portfolio has grown by more than 66 percent in the past year. ILWU originated over $17 million in real estate loans through the first nine months of 2005, a 154 percent increase from the same period last year. According to Cele Schiewe, VP of Lending, ''Our members have taken advantage of competitive rates to refinance adjustable rate mortgages to fixed mortgages.''
Auto lending has also been a growth area, rising 45 percent from third quarter last year to $25 million in outstandings. Member demand has resulted in ILWU focusing on new auto loans. There was also a 40 percent increase in unsecured loans outstanding with a total of over $11.7 million this quarter on the balance sheet at September 30.
Unsecured loans account for 21 percent of ILWU’s total loans, a percentage that is significantly higher than the national average of 9.5 percent. As a result, ILWU earns an average loan yield of almost 8 percent, higher than the national credit union average of just above 6 percent. This higher loan yields allow ILWU to pay out very competitive share rates that drive current member share growth as well as new member growth.
ILWU’s membership has increased 22 percent, over ten times the national credit union average and more than five times the average of California state chartered credit unions (4.31%). According to Schiewe, the recent rise is primarily due to additional hiring by their select employee group. However, ILWU has consistently stayed above the average of California state charters.
Data from Peer-to-Peer.
''New members have been a primary factor in our share growth'', says Schiewe. ILWU has posted a 19.9 percent share growth rate over the past 12 months. Growth occurred across the portfolio with shares, share drafts, and share certificates rising 9.4%, 60.9% and 92.1%, respectively.
Due to Hurricanes Katrina and Rita, the NCUA has delayed the issuance of September 2005 data until December 28, 2005. To see your credit union compared to its peers and competitors, submit your 5300 call report to our First Look Program today.