Growth was visible on several fronts for Orange County’s credit unions over the past year.
The 33 largest credit unions with headquarters here collectively saw increases in total assets, net income and membership, according to this week’s Business Journal list.
The member-owned financial institutions combined for nearly $16.3 billion in assets as of June 30, about a 2.1% increase over the same time last year. Nearly half—15—reported gains, while 18 had asset declines.
Last year’s list showed a nearly 6% increase in combined assets, a jump after a few years of modest gains of between 1% and 2%. Prerecession growth was in the double digits.
The new list indicates growth was more evenly spread this year.
SchoolsFirst Federal Credit Union, the largest in the county, drove asset gains in previous years as other entries typically combined for smaller gains or losses.
Santa Ana-based SchoolsFirst continued to account for more than half of the total assets over the past year—with about $9.8 billion—but it played less of a role in pulling the overall growth. The 32 other credit unions on this week’s list would have had a 2.4% increase in assets without SchoolsFirst, a slightly higher rate of growth.
Local credit unions also were more profitable during the first half of the year, with 23 reporting profits. The entries combined for $83.9 million in earnings, up 13% over the same time last year.
The growth would have been 33% without SchoolsFirst, which accounted for a third of the year-over-year increase and ended the first half of the year with $58 million in net income.
SchoolsFirst employs about 1,190 workers in Orange County and serves about 536,000 members through 15 local branches.
• No. 2, NuVision Federal Credit Union, had 2% asset growth, to $1.2 billion. Its six-month profit stayed flat at about $5.1 million.
Asset growth came from “several avenues,” Vice President LJ Tarman said. “The real estate refinance boom earlier in the year brought many new members to NuVision who were able to take advantage of historically low rates. The economy continues to slowly grow, increasing [our] consumer-lending portfolio.”
NuVision gained about $100 million in assets as a result of a merger with Los Angeles-based Pacific Resource Credit Union. It folded Pacific Resource into its operations, and James McHale, formerly chief executive of Pacific Resource, joined the company as chief risk officer.
Tarman said credit unions “still are challenged by tight margins,” though stronger consumer and real estate lending have helped.
“Like any business, we need to keep a mindful eye on our bottom line,” she said. “This is especially true for credit unions, because as a not-for-profit industry, we are owned by our members, not by shareholders, and we feel an increased responsibility to the members we serve daily. We continually look towards long-term growth, not short-term profits.”
NuVision hired 19 workers in OC over the year and currently employs 227. The credit union serves 35,000 members, down about 5% from a year ago.
• Brea-based Evangelical Christian Credit Union ranked No. 3, with nearly $1.1 billion in assets as of June, down nearly 2% year-over-year. Profit increased by about 64% to $2.5 million. It has about 260 employees here, down 3%.
• Credit Union of Southern California made the list for the first time at No. 5, with $723.1 million in assets. The Brea-based credit union is the sole newcomer on the list. It’s the result of a merger last year between North Orange County Credit Union and Family 1 Federal Credit Union, both of which were previously on the list.
The combined organization had $5.9 million in earnings, up about 95% from a year earlier. It has 71 employees here serving a membership of about 9,140 people.
The organization acquired Anaheim-based Firestone Financial Services Credit Union last month. Firestone is listed at No. 25, with recently reported assets of $16.9 million, a 4% year-over-year increase. Its six-month loss widened this year to $428,000. Firestone’s chief executive, Lori Lyons, remained as branch manager at its sole location.
The merger will be reflected on next year’s list, since rankings are a snapshot as of June.
• It’s the last time Lutheran Credit Union of America will be on the list. The institution, which ranked No. 21 with $29.2 million in assets, recently combined with Glendora-based America’s Christian Credit Union, which has about $254 million in assets. Lutheran Credit Union had a $38,000 loss for the first half of the year, versus a $95,000 loss a year ago.
