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Locally owned credit unions in Alabama and Florida saw steady growth in the first quarter of 2015. Credit unions are adding members, assets, loans, and helping their members save money. Credit unions in Florida added 90,000 new members to pass the five million member mark in the first quarter. This is a significant milestone. Credit unions in Alabama added 13,000 new members in the first quarter to climb to a record high of 1.93 million members. Credit unions in Florida also added $2 billion in new assets for a record $51.8 billion in assets; bypassing the $50 billion mark altogether. Credit unions in Alabama added $541 million in new assets in the first quarter for a record $19.5 billion in assets.
“Passing the five million member mark in Florida is a significant milestone,” said LSCU & Affiliates President/CEO Patrick La Pine. “Florida has the fourth most members in the country and Alabama is climbing on the list. What we are seeing is more people are searching for a local financial institution that has their best interest in mind. Once a person joins a credit union, not only are they a member owner, but they rarely leave because the member service experience is so good.”
Credit unions in Florida are seeing better growth than the national credit union average in loans, member business loans, and savings. They added $542 million in new loans with $85 million of those loans going to small businesses through member business loans. New and used car loans are also well above the national credit union average. Florida members saved $1.7 billion in the quarter; nearly one full percentage point higher savings growth than the national credit union average. Credit unions in Alabama are a little below the national credit union average for growth in loans and savings. Alabama members saved $477 million during the first quarter which continues a trend over the past four years.
The measure of a strong credit union is its return on assets (ROA) and net worth ratio. To be considered well capitalized, a credit union should have a seven percent net worth ratio. Credit unions in Alabama have a collective net worth ratio of 11.4 percent, which is nearly one percentage point higher than the national credit union average. Credit unions in Florida have a 10.8 percent net worth ratio which is right at the national credit union average. This shows that credit unions in Alabama and Florida are strong local businesses in communities across both states. Delinquencies and net-charge offs continue to trend down in both states with Alabama near the national credit union average, while Florida’s delinquent loans and net charge offs are half of what they were four years ago.
You can read more coverage of the quarterly numbers in the CU Journal, CU Today, South Florida Business Journal, Montgomery Advertiser, and the Sarasota Herald Tribune.
