Orange County’s credit unions are back to growing assets by double-digit percentages.
Combined assets of the 19 biggest here climbed 10% to $21.3 billion in the year ended June 30, the biggest percentage increase since 2007, according to Business Journal records. That tops the 7.8% growth reported last year and the 8% climb in 2015. Annual growth had been mostly in the single digits since the 2008 financial crisis.
“Economic conditions are really positive, and consumer optimism is high,” said Roger Ballard, chief executive of Huntington Beach-based NuVision Federal Credit Union, No. 2 on the list. “More people are learning that they can join credit unions, which are a great deal.”
This week’s Business Journal ranks the 19 biggest OC-based member-owned financial institutions by assets as of June 30. It also includes their net income and number of local employees and branches operated, though those metrics doesn’t affect the rankings.
Twelve institutions grew assets over the year, including six by more than 10%. Seven credit unions reported declines in assets.
Their OC headcount increased 10% to 3,020. Santa Ana reported the most credit union headquarters, with four.
The firms reported their memberships climbed 7.4% to 1.15 million.
“They want digital convenience, their finances simplified, access to reasonably priced loans, and to do business with someone they can trust and who has their best interest at heart,” said Shruti Miyashiro, chief executive at No. 3, Orange County’s Credit Union in Santa Ana.
The credit unions increased net income 2.7% to $75.3 million in the first six months of this year. However, the increased profitability came mostly at the two biggest, SchoolsFirst Federal Credit Union and NuVision. Thirteen credit unions reported their profits declined. Only two firms reported losses during the period.
Top Five
• Santa Ana-based SchoolsFirst once again retained the No. 1 position with about $13.9 billion in assets, up 12% year-over-year. It accounts for 65% of the list’s assets, up from 64% a year ago.
The credit union reported net income of $54.7 million, up 16%. It boosted OC employment by 17% to 1,749, and had 759,177 members, up about 8.5%.
SchoolsFirst has more assets than Santa Ana-based Banc of California Inc.—the top-ranked bank in OC with about $10.4 billion in assets (see related story, page 28).
• NuVision’s net assets grew 10.3% to $1.6 billion during the year. Its net income climbed 8.8% to $3.9 million for the six months ended June 30. Employee count grew 2.7% to 267, and membership climbed 7.7% to 81,594 from a year earlier.
“We’ve executed well,” Ballard said. “We’re meeting the needs of consumers. We’ve had robust loan growth, and we’re pursuing new customers and small businesses.”
• Orange County’s Credit Union had $1.5 billion in assets, up 8.7% as its net income dropped 13% to $6.2 million. The credit union employs 303 locally, up 2.4%, and has 103,285 members, about 6%. Its branch count remained at 10.
• No. 4, Credit Union of Southern California in Anaheim, reported a 13% increase to $1.2 billion in assets. The institution reported net income of $5.4 million, down 35%. The credit union says it employs 77 locally and has an estimated 9,140 members.
“It’s a combination of organic growth and mergers, 14 mergers over five years,” Chief Executive Dave Gunderson said. “A lot of our growth is coming in checking account balances. We have no fees on checking accounts.”
Half of its new membership comes from other members referring the credit union because of its service, he said.
“For us, it’s our mission to build better-class service,” Gunderson said. “We really are out to make a difference to make that first auto loan, that first home loan.”
• Evangelical Christian Credit Union in Brea completes the top five with $802 million in assets, a 12% decline and the largest drop on the list. It reported that profit fell 31% to $1.8 million in the six months ended June 30.
Employee count remained at 150, and membership climbed 4% to 11,000.
