New York Credit Unions Outperforming Banks in Several Areas

Contact: Ron McLean, Association SVP
(800) 342-9835, ext. 8191, cell: (518) 469-5945
Ronald.McLean@cuany.org

(July 8, 2013 - Albany, NY) – Credit unions across New York State began 2013 with strong financial performance, exceeding bank and national industry averages in several key categories. These statistics are highlighted in a new quarterly New York Credit Union Performance and Trends Report published by the Credit Union Association of New York in partnership with Callahan & Associates, Inc.

According to the report, New York credit unions exceeded national averages in asset, share, membership and loan growth during the first quarter. Key takeaways include:

  • New York credit unions remain more highly capitalized than their local competitors. As of March, New York credit unions reported an average capital ratio of 11 percent—well above their local bank peers.
  • Asset quality for New York credit unions is also stronger than that of banks across the country, which are charging off 0.83 percent of their loan portfolios. New York credit unions also continue to have a lower delinquency ratio than local and national banks.
  • New York credit unions recorded an ROA in the first quarter that is 41 basis points above local banks’ ROA.
  • New York credit union loan originations hit $4.4 billion in March 2013—a nearly 9-percent increase over March 2012 levels.
  • First mortgages, boosted by the current re-fi boom, continue to be the largest portion of the loan portfolio at New York credit unions. At the end of March, they made up 41.1 percent of all outstanding loans.
  • New York credit unions originated $850 million in member business loans in the first quarter, holding 19.1 percent of all outstanding small business loans at New York financial institutions by the end of March.
  • Membership growth at New York credit unions during first quarter remained faster than the national average.

“This report reaffirms that more and more New Yorkers are choosing credit unions for their financial services, from mortgages and business loans to savings and checking accounts,” said William J. Mellin, president/CEO of CUANY. “Along the way, they’re discovering the unique financial and personal benefits that come with credit union membership.”

The Credit Union Association of New York has served as the trade association for the state’s credit unions for 96 years. New York credit unions have assets of more than $62 billion and serve 4.8 million members. To learn more about the Association, visit www.cuany.org. To find a credit union or learn more about the credit union movement, visit www.asmarterchoice.org.

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