It’s been a mixed year for Orange County’s credit unions as they grew assets by about 7.8% to $19.4 billion for the year ended June 30 while combining for a 1.3% decline in net income to about $73.4 million for the first six months of 2016.
This week’s Business Journal ranks the 21 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 that data doesn’t affect the rankings.
The asset growth is on par with last year’s 8% increase to $18 billion and markedly improved from the 1% growth notched in 2009.
Credit unions have grown in recent years because they provide “personalized service and tailored guidance to help members achieve lasting security,” said Bill Cheney, chief executive of SchoolsFirst Federal Credit Union, in an email to the Business Journal.
Credit unions also help members—the industry word for customers—save money by providing products and services for free or with low fees, he said.
Sixteen institutions grew assets over the year, and five reported declines. Four dropped off the list after merging with other organizations or because their latest government filing indicated they were “inactive.”
Ten credit unions reported better profitability in the first half of 2016 compared with a year earlier, and four reported smaller losses or a swing to profit.
Top Five
• Santa Ana-based SchoolsFirst easily retained the No. 1 position with about $12.4 billion in assets, up about 9% year-over-year. It accounts for about 56% of the assets on the list.
The credit union reported net income of about $47 million, down 16%. It hired nine to employ 1,500 locally and has 700,000 members, up about 4.7%. Its employees make up about 55% of staff represented by list companies and almost 69% of members. It operates 18 OC branches, the same as last year.
SchoolsFirst has more assets than Irvine-based Banc of California—the top-ranked bank in OC with about $10.2 billion in assets (see related story, page 23).
• NuVision Federal Credit Union in Huntington Beach is No. 2 with about $1.42 billion in assets, up 3.6%. It reported net income of $3.5 million, down about 34%.
It employs one fewer person for a total of 224 among seven OC branches. The institution’s membership dropped 6% to 27,030 across seven branches, the same as last year.
• Orange County’s Credit Union in Santa Ana is No. 3 with $1.4 billion in assets, up 12.5%. It had net income of $7.2 million, up 11%. The credit union employs 296 locally, up 5.7%, and has 97,541 members, up 5%. Its branch number remained the same at 10.
• Credit Union of Southern California in Anaheim is No. 4 with a little less than $1.1 billion in assets, up 10%. The institution reported net income of $8.4 million, up 76%. The Business Journal estimates it employs 77 locally and has an estimated 9,140 members. The credit union said it opened two new branches, bringing it up to nine in OC.
• Evangelical Christian Credit Union in Brea completes the top five with $911 million in assets, down 3.5%. It swung to a profit of about $2.6 million after posting a $1.6 million loss for the same period a year earlier. It employs 150 locally and has 10,570 members. The credit union operates one branch in OC.
Swing to Profits
Two other institutions returned to profitability over the year.
• California Agribusiness Credit Union in Buena Park is No. 16 with $29 million in assets, up 2%. It reported net income of $62,055 after posting a net loss of $222 a year earlier. The credit union employs six at one branch and has 4,854 members, up 1%.
• FedOne Federal Credit Union in Laguna Niguel is No. 17 with about $20.4 million in assets, up almost 1%. It posted net income of $18,172 after reporting a $2,455 net loss a year earlier. The Business Journal estimates the credit union employs five locally and has an estimated 2,000 members. It has one branch in OC.
Widened Losses
Three institutions reported increased losses this year:
• Union Pacific California Federal Credit Union in Los Alamitos is No. 18 with about $8.8 million in assets, down 2%. It reported a net loss of $16,333 after posting a net loss of $598 a year earlier.
• Cherry Employees Federal Credit Union in Santa Ana is No. 20 with $3.5 million in assets, down 6.7%. It had a net loss of $4,078 this year after a net loss of $310 a year earlier.
The credit union cut one employee, leaving it as a single-employee operation serving 463 members in OC, down about 5.9%.
• Fountain Valley Credit Union in Fountain Valley is No. 21 with $2.1 million in assets, up 2%. It reported a net loss of $5,798 this year, slightly larger than the $4,969 net loss posted for the same period a year earlier. Its sole employee serves 230 members in OC, down 5%.
