Increased Membership, New Auto Loans Propel VA CUs’ Growth

Virginia state chartered credit unions report positive growth in the third quarter, benefiting from increased investment in marketing and new auto employee-pricing promotions.

 
 

Virginia state chartered credit unions reported strong results in the third quarter led by an increase in total membership of 4.3%. This growth rate is 60 basis points higher than the average of state chartered credit unions that are participating in Callahan & Associates, Inc.’s First Look program and was more than twice the industry average of 1.6% posted through June.

Virginia State Chartered Credit Union Profile

  • 60 state chartered credit unions
  • $4.2B assets
  • 573,745 members
  • $2.7B loans
  • $3.6B shares

One factor influencing the membership growth was a 23.3% increase in marketing expenses. The increases in membership and marketing led to strong loan growth in both real estate and auto loans. In real estate loans, the majority of the growth was in second mortgages, which grew 17.5% for the 12 months ending September 30, 2005. Of these loans, 51% were home equity lines of credit ($216.7M), down from 55% one year ago, reflecting the impact of rising rates on member borrowing decisions.

Auto loans also experienced strong growth. New auto loans led the growth with a 27% increase over the 12-month period due to employee pricing programs launched this summer by auto manufacturers. In fact, 59% of new auto loan growth over the past 12 months occurred in the third quarter, reflecting record new car sales in July. Nationwide, credit unions benefited from these new car sales incentive programs as well. All participating First Look Credit Unions posted average new auto loan growth of 23.1% over the past 12 months.

While Virginia’s statewide results are noteworthy, individual credit union successes are also worth highlighting. Below are some of the leaders in several growth categories, earnings measures and balance sheet ratios.

Virginia State Chartered Credit Union Leaders
All Credit Unions over $20 million in Assets as of 9/05

Performance Measure

Leader

Actual

VA State Chartered Avg

9/05 Assets

First Look State Chartered Avg

Assets

Virginia Credit Union, Inc.

$1,281,379,244

$69,840,899

$1,281,379,244

$238,943,887

Loan growth

Fort Monroe Credit Union, Inc.

35.6%

12.5%

$22,440,006

12.5%

Member growth

DuPont Community

8.09%

4.3%

$531,030,283

3.7%

Share growth

DuPont Community

11.9%

5.8%

$531,030,283

6.4%

Net Worth to Assets

AB&W Employee Credit Union

14.9%

11.2%

$27,486,032

10.3%

ROA

PWC Employees

1.9%

0.9%

$31,053,054

0.9%

OpEx/Average Assets

Martinsville Dupont

2.3%

3.36%

$210,956,079

3.0%

Payout Ratio

Martinsville Dupont

100.23%

73.34%

$210,956,079

81.23%

 

 

 

Nov. 28, 2005


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