Study: CDCUs Still Growing Despite Recession
The recession has hurt community development credit unions but has not knocked them out, according to a report from the National Federation of Community Development Credit Unions
Not surprisingly, the National Federation study found the return on average assets for the median CDCU had dropped by nine basis points last year due to the charges from the National Credit Union Share Insurance Fund. But the report also found that the majority of CDCUs have net-worth ratios of 9.53% while the numbers of members in CDCUs rose by 41,000; CDCUs increased their lending by 4.83% to $3.69 million and deposits in CDCUs increased by 16.2%
On the down side, the report also found that loan originations slid by 3% from 2008, to $1.51 million.
"Despite the enormous pain inflicted by the crisis, CDCUs remain a viable and vital resource for the recovery of low-income communities," said Federation CEO Cliff Rosenthal who co-authored the study.