Orange County’s credit unions continued their asset and membership roll during the past year.
The 28 OC-based credit unions on this week’s Business Journal list reported $9.2 billion in assets at the end of June, up 10% from the $8.3 billion they reported at the same time last year.
Credit union membership in the period also rose 10%, to 655,710 people. Despite the increase in assets, net income at the credit unions declined 1% to $57.5 million.
Credit unions are not-for-profit institutions that provide banking services to their members. Borrowing rates and fees usually are lower than their bank counterparts, while rates on deposits are higher.
Net income is given back to members through rebates or bonuses. Profit margins are slim. At $57.5 million, total net income for the 28 credit unions was just 0.6% of total assets.
List data is drawn from the California Department of Financial Institutions and the National Credit Union Administration. The Business Journal expanded this year’s list by eight credit unions.
The list’s heavy hitter, Orange County Teachers Federal Credit Union in Santa Ana, easily repeated as the county’s No. 1 credit union. Orange County Teachers reported $5 billion in assets at June 30, a 12% climb versus $4.4 billion a year earlier.
The teachers’ credit union dwarfs the other 27 credit unions, accounting for 54% of assets held by OC-based credit unions. The teachers’ credit union is the third-largest federal credit union in the U.S., according to the National Association of Federal Credit Unions.
Net income at the teachers’ credit union grew 11% to $40.8 million in the past year. The pace was much faster than last year’s 4% growth.
The credit union, which caters to school employees and their families, accounted for more than 70% of all profits at OC-based credit unions in the past year. Membership in the credit union grew 7% to 312,467 in the period.
No. 2 Santa Ana-based Orange County’s Credit Union saw its assets grow 14% to $759.9 million in the past year. The credit union has 245 workers at its seven county branches.
Net income at Orange County’s Credit Union declined 5% to $3.1 million in the past year. Membership rose 6% to 78,237.
No. 3 Huntington Beach-based NuVision Financial Federal Credit Union reported $658 million in assets, a 2% increase compared to last year.
Membership at its four OC branches declined 20% to 20,920 in the past year, with profits declining 36% to $800,000.
No. 4 Brea-based Evangelical Christian Credit Union had another strong year of asset growth. The credit union saw assets grow 24% to $607.9 million, following a 30% increase on last year’s list.
But asset growth doesn’t always mean profit gains. Profit at the credit union fell 10% to $4.4 million. Membership also fell 10% to 1,433.
The biggest percentage gainer on this year’s list was at No. 8 Pacific Community Credit Union in Fullerton. Pacific Community posted a 33% jump in assets to $171.2 million in the past year.
Another big gainer on this year’s list was No. 25 Lutheran Credit Union of America in Brea. Lutheran saw a 20% increase in assets to $21.8 million, though net income fell 19% to $130,000.
Few Decliners
Just two credit unions reported a decline in assets.
No. 12 Patriots Federal Credit Union in Aliso Viejo saw assets fall 25% to $92.1 million. Membership was flat at 10,000.
And No. 24 Pacific Coast Credit Union in Costa Mesa notched a 5% decline in assets to $22.5 million. The credit union reported a loss of $3,000 for the 12 months.
Overall, the credit unions employed 2,138 workers, about even versus a year earlier.
The Business Journal expanded the list by eight credit unions this year. Newcomers are No. 6 Partners Federal Credit Union in Anaheim; No. 11 Sea Air Federal Credit Union in Seal Beach; Patriots Federal; No. 15 Building Trades Federal Credit Union in Orange; No. 16 Cannon Financial Federal Credit Union in Santa Ana; No. 17 Tenet Credit Union in Los Alamitos; No. 18 Health Associates Federal Credit Union in Orange; and No. 20 Golden West Cities Federal Credit Union in Garden Grove.
