MONEY FLOWS
Credit Unions Reported Asset and Membership Gains in Past Year
By ANDREW SIMONS
More people in Orange County put more money into credit unions in the past year.
The 20 credit unions based in OC reported $7.7 billion in institution-wide assets on June 30, a 17% gain versus last year, according to this year’s Business Journal ranking of credit unions. At the same time, membership in the credit unions that reported enrollment numbers rose 6% to 536,776.
Asset data from the California Department of Financial Institutions and the National Credit Union Administration is used to compile the list, which is the Business Journal’s second annual crack at the county’s credit unions.
Net income was flat at $51.8 million for the credit unions as a whole. The top six credit unions maintained their spots on the list.
The Orange County Teachers Federal Credit Union in Santa Ana repeated as the county’s No. 1 credit union. Orange County Teachers reported $4.4 billion in assets at June 30, a 20% climb compared to last year’s $3.7 billion.
The teachers’ credit union dwarfs the other 19 credit unions, accounting for 58% of assets held by OC-based credit unions. The teachers’ credit union is the No. 3 credit union in the U.S., according to the National Association of Federal Credit Unions.
Net income at the teachers’ credit union grew 4% to $36.9 million. The pace was much slower than last year’s 56% growth. The credit union, which caters to teachers and their families, accounted for about 71% of all profits at OC-based credit unions in the past year.
Orange County Teachers’ membership grew 9% to 294,000 in the 12-month period.
No. 2 Santa Ana-based Orange County’s Credit Union saw its assets grow 15% to $665.3 million in the past year. The credit union has 241 workers at its six branches in the county. Net income at Orange County’s Credit Union declined 4% to $3.3 million in the past year. Membership rose 5% to 74,500.
No. 3 Huntington Beach-based NuVision Financial Federal Credit Union had $642.1 million in assets, a 12% increase compared to last year. Membership at its three OC branches declined 3% to 65,000. At the same time, NuVision’s profits declined 53% to $1.3 million in the past year.
The fastest-growing credit union was No. 5 Brea-based Evangelical Christian Credit Union, which saw assets soar 30% to $491 million. Profits at the credit union also climbed, up 10% to $4.9 million. Membership at the credit union declined 6% to 1,600 people. Evangelical Christian moved into a new 125,000-square-foot building in Brea at 955 W. Imperial Highway earlier this year.
Few Decliners
Just three of the credit unions posted a decline in assets: No. 15 Newport Beach-based Pacific Coast Credit Union, down 4% to $23.8 million; No. 19 Brea-based Southern Baptist Credit Union, off 1.3% to $8.9 million; and No. 20 Fountain Valley-based Fountain Valley Credit Union, down 2% to $2.7 million. The trio also reported declines in net income.
The credit unions employed 1,966 workers, up 5% for the 12 months.
The list saw two new entries: No. 10 Santa Ana Federal Credit Union, which reported a 13% gain in assets to $68.3 million, and No. 13 Placentia-based Family 1 Federal Credit Union, which had a 22% rise in assets to $25.9 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.
Credit unions cater to a particular region or group affinity. Evangelical Christian, for one, counts churchgoers as members.
Net income is given back to members through rebates or bonuses. Profit margins are slim. At $51.8 million, total net income for the 20 credit unions on the list was just 0.7% of total assets.
