The cooperative credit union system continues to generate stability and liquidity across the nation, one loan at a time. Throughout the recession, and continuing today, credit unions have identified and addressed the financial needs and concerns of local economies in a way no other institution can.
In the tumultuous days of economic crisis, the industry set a record $272 billion in loan originations for 2009; this is just one facet of the stabilizing activity that helped members find the ground beneath their feet in an uncertain time. This powerful trend continues today with roughly $69.7 billion in loans originated within the credit union system in 3Q 2010 — that's more than $1 billion per business day of liquidity injected directly into the heart of economic stabilization, the working class American family.
New loan originations are just part of credit unions' extraordinary activity. Coupled with debt management solutions and financial education, the proactive refinance campaigns in which many credit unions are currently engaged creates democratic consumer access to record-low interest rates while decreasing consumer debt load in the process.
Local economies are now witnessing a re-emergence of consumer confidence. The NY Times reports a 0.5% rise in personal income and a 0.4% increase in October spending. Over Thanksgiving weekend, on average shoppers spent more than 6% over what they spent last year. And applications for first-time unemployment benefits fell in the third week in November, to a point well below analyst’s predictions.
The cooperative system is witnessing the fruits of its labor not only among its membership but also on its own balance sheets.
Suncoast Schools Federal Credit Union ($5B, Tampa, FL) had its first monthly positive net income for the past 36 months this October, a turnaround ahead of its projected timeline.
Members 1st Federal Credit Union's ($1.9B, Mechanicsburg, PA) year-over-year loan growth increased 7.46% as of 3Q 2010. Mortgage refinance activity nearly quadrupled from June to September 2010, as 30-year-fixed mortgage dropped to 4.250% APR over the same period.
To learn more about the credit union system’s incredible performance during third quarter and to identify your institutions positioning in a network that delivers quantifiable relief and recovery nationwide, join Callahan & Associates for the 3Q 2010 Trendwatch Call.