Local credit unions’ growth is back on the fast track.
The non-profit financial institutions have been playing a vital role for consumers, especially those squeezed by high inflation and a balky economy.
Total assets climbed 7.7% on an annual basis to $46 billion as of June 30, 2024 for the 16 credit unions surveyed by the Business Journal.
That was a major turnaround from last year, when the credit unions reported a 4.2% rise in assets, the slowest pace in four years.
SchoolsFirst Federal Credit Union in Tustin easily held on to its No. 1 position as its assets reached $30.9 billion, a 7.6% increase.
SchoolsFirst was founded in 1934 when 126 school employees in Santa Ana pooled $1,200 to look out for each other’s financial well-being.
Since then, SchoolsFirst FCU has grown to serve more than 1.4 million members, making it the largest credit union in California. SchoolsFirst has 70 branches throughout the state, including 22 in Orange County.
“Our focus on serving school employees and their family members, I think, makes a big difference in terms of membership growth,” the financial institution’s President and CEO Bill Cheney told the Business Journal.
He noted that “we’ve expanded our footprint geographically,” including the recent opening of a branch on the campus of California State Polytechnic University, Pomona.
SchoolsFirst has two other branches on university campuses – California State University, Fullerton and UC Irvine.
$6.6B in Loans Despite Eco Challenges
Despite the economic challenges of the last two years, SchoolsFirst funded over $6.6 billion in loans in 2023, the credit union stated in its annual report.
Last year, SchoolsFirst also provided $396.3 million in direct savings to its members from higher dividend rates on savings, from lower interest rate loans, and fewer fees.
The recent Federal Reserve rate cut has also brought added relief to members, according to Cheney.
“Higher inflation was expensive for our members, and so this actually helps with what they have left at the end of the month,” Cheney said.
Not all the news in the OC credit union sector was good.
The combined net income fell 28% to $93.2 million for the six months ended June 30, while the asset growth rate slowed for seven of the 16 credit unions on the Business Journal list.
No. 2 Nuvision Federal Credit Union reported 11.6% growth of assets to $3.5 billion as of June 30.
Huntington Beach-based Nuvision completed its acquisition of Paradise Valley Credit Union earlier this year.
The acquisition added 4,500 members, $80 million in assets and 14 branches in the San Diego area.
It was the “first-ever expansion for Nuvision into the San Diego area,” according to industry website Credit Union Times.
Credit Union of SoCal Shows Fastest Rate
Costa Mesa-based Credit Union of Southern California (CU SoCal) was ranked No. 3 as its assets grew 14% to $3.4 billion. That was the fastest growth rate on the Business Journal list.
“If you live, work, worship or attend school in Los Angeles County, Orange County, Riverside County or San Bernardino County, we can make your plans a reality,” says CU SoCal.
In the much smaller category, the Comunidad Latina Federal Credit Union (CLFCU) in Santa Ana was ranked No. 15 on the Business Journal’s list as its assets grew 6.6% to $9 million.
CLFCU’s vision is “To be the trusted financial institution of choice for our underserved community by providing access to quality financial services and education that will help our community reach financial stability and overall improved quality of life.”
The U.S. Census Bureau says that 77% of Santa Ana’s population was Hispanic or Latino as of 2023.
