Florida/Alabama CUs Show Improved Growth, Net Worth Path
Growth and net worth ratios of Alabama and Florida credit unions remain on a firm upward climb despite the tough economy, the League of Southeastern Credit Unions reported this week.
In a statement, the trade group, which has joint headquarters in Tallahassee and Birmingham, said second quarter statistics show $615 million in additional assets underscored by "five straight years of collective growth" in the two states
The gains come as the economic environment remains in the doldrums, said the chairman of the league, Joe McGee who also is president/CEO of Legacy Community FCU of Birmingham.
"The challenges faced by credit unions in Alabama and Florida have been steep with high unemployment in both states and a significantly depressed housing market in much of Florida," said McGee.
Despite those hurdles, CU assets in Alabama grew at a 4% rate, "which is double the national credit union average. The net worth ratio for Southeastern credit unions remains very healthy with Alabama credit unions net worth ratio at 11 percent, while Florida credit unions net worth ratio is 9% percent."
Florida CUs, he went on, added 25,000 members in the first two quarters of 2010.
"Florida credit unions have seen positive member growth for three straight quarters," he said noting also that CUs in the two states "are seeing their loan delinquencies drop, Alabama's delinquencies are a half-percent below the national credit union average, and also net charge offs have fallen to their lowest level in three quarters. Florida's credit unions also saw drops in loan delinquencies and net charge offs for the first time in two years. This shows credit unions in the Southeast are turning the corner from the economic downturn of the past few years.
"It is encouraging to see these positive statistics, as they would tend to indicate that credit unions in these states are fulfilling their mission of assisting people in successfully managing their finances, even in a tough economic climate," said McGee.