BOSTON – Credit unions in a half-dozen states-particularly the so-called Sand States of California, Arizona, Nevada and Florida–may be sinking deeper and deeper, but many credit unions around the country are growing and even prospering their way through the recession, according to their volunteer directors.
In southwest Louisiana, where hurricanes have taken a major toll the past few years, CSE FCU is booming, according to Ken Gardner Jr., one of several directors interviewed last week during UNA’s America’s CU Convention. "We’re actually benefitting now from the storms of the last four years because of the rebuilding," said the volunteer director, who noted an influx of insurance payments following hurricanes Ike and Gustav, and greater loan demand to finance the rebuilding.
"We’re lending money for homes and cars; and we’ve always done a lot of boat loans," he added.
For the first quarter of 2009, loans at CSE grew almost 3%, while shares at CSE grew a strong 7.5%.
"This (the banking crisis) turned out to be good for us," said Frank Spencer, a volunteer director for Teachers FCU in Farmingdale, N.Y. "People are taking their money out of banks and bringing it to us."
Teachers FCU, the $3 billion Long Island credit union giant has seen a whopping 15% growth in shares (deposits) in the first quarter, $361 million. Board member Spencer said mortgage refinancings are up, car sales are up and the credit union plans to open at least two additional branches to accommodate growth.
"We are doing remarkably well," said Bruce Bero, a director at Consumers CU, in Oshtemo, Mich., which is far away from the state’s embattled car manufacturing. The $310 million credit union reported 9% share growth for the first quarter.
Consumers, which serves several area colleges and the state’s agricultural community, is opening a new branch and plans as many as two more branches to service its strong growth. "We have the confidence of people in the area," said Bero, who has served on the board of the one-time gas and electric credit union for 20 years.
"We have so much money, we just hope we can start getting some of it out on the street in loans," said Bob Mitchell, chairman of the board for Liberty Bay FCU. The long-time telephone workers credit union, which just moved from Boston to suburban Braintree, Mass., has seen an influx of shares, $41 million since February, according to Mitchell.
Judy McDonald, a director at Tarrant County CU, in Fort Worth, Texas, said her $50 million credit union has been buffered from the national recession so far. So they are planning to build two stand-alone branches, their first outside of county offices, said the volunteer director.
Maddie Daust, a director at Southbridge (Mass.) CU, said her $165 million credit union has seen a surge in lending for cars and mortgages, especially refinancings, and an increase in shares. "It’s very promising," she stated.
"Our outlook is good," said CSE FCU’s Gardner. "We should continue to grow. If the economy turns around I hope we will never see the real suffering that others are seeing."
