SESLOC Federal Credit Union passes $1 billion-asset mark

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SESLOC Federal Credit Union in San Luis Obispo, Calif., is the latest credit union to cross the $1 billion-asset threshold.

The milestone “truly is a monumental achievement," President and CEO Geri LaChance said in a press release over the weekend. “The credit union’s growth is especially significant at a time when financial institution mergers and acquisitions are prevalent; SESLOC’s growth has been achieved organically, building healthy relationships with households in our communities over decades.”

Originally chartered in 1942 as an educators’ credit union, SESLOC expanded to a community charter in 2001 to serve all of San Luis Obispo County and again in 2015 to serve northern Santa Barbra County as well. It has 160 employees and serves more than 56,000 members.

It posted earnings of just under $600,000 during the first half of 2020, compared with about $3.7 million during the same period last year, according to call report data from the National Credit Union Administration. Interest income and noninterest income remained roughly level from the end of June 2019, but allowances for loan and lease losses rose by over $1 million (36%), while noninterest expenses increased by more than $1 million (14%). Staffing costs were also up by more than $1.6 million.

Surpassing $1 billion puts SESLOC in a comparatively small group of credit unions. Only about 7% of the industry holds $1 billion or more in assets, according to second-quarter data from NCUA. However, those institutions hold roughly 70% of total industry assets. Credit unions of $1 billion and above were the only asset category to report rising net worth, membership and loans during the year ending June 30, while all other asset classes saw declines in at least one of those metrics.

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