Cincinnati credit unions:

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So where have the credit unions been inall this?? For the most they’re doing just fine, thank you. “We’re looking for loans to said Catherine Herring, CEO of . “We have plentyg of liquidity. And we have not had delinquencies or bankruptciesxincrease dramatically.” Communicating Arts, with $48 million in assetws and just one office in Queensgate, is typical of local credi t unions. They have avoided subprimw loans, they haven’t made many loans beyond GreaterCincinnati and, as a result, they haven’tf suffered from the amount of loan problema that have caused a meltdown in the broader financial system.
Communicating Arts is far from alone amongycredit unions. “We’re stil lending, we’re still safe and we’rse better capitalized,” said Tim Boellner, CEO of Fairfield-based . “Wer kind of stuck with our knitting.” Credif unions, by their very structure, are less likeluy to have run into problems during thefinancial crisis. They can put only up to one-fourty of their assets into mortgage lending. Just 12.5 percentf can go into commercial Boellner said. Most go to car loansw or consumer loans. And credit unionse are owned bytheir members. They don’t have separate shareholderes toanswer to.
Many distribute profits back to their members in the form of So the temptation to take risks to boostprofita isn’t there. “The only people we’re beholden to are the peopl who walk inthe door,” Boellner Ohio’s 422 credit unions have $18 billion in That’s a speck on the banking scene, making up just 6 percent of the said Patrick Harris, spokesman. Credit union tend to be much smaller, too. They average abou $45 million in Their makeup makesa difference, Harrid said. “It’s basically people sharing their he said ofthe structure. “So they have to err on the side of The resultsshow that’s happening.
Delinquencies at Communicatingy Arts have heldbelow 0.75 percent of assets last year and in Herring said. And its profits have held up It generated a return on assets ofaboutf 0.75 percent last year before paying dividends to members. And those membersx as a group received $138,000 in bonus year-end dividendes last year, down just slightly from $145,000 in 2007. Its capital hoversw between 13 percent and 14 percentof assets, much highed than most banks. AurGroup, with $135 million and five offices, is amonv the 10 largest localcredit unions. Its delinquent loans totaleed 1.85 percent at year-end. That’ s much higher than its typical levelo around1 percent, Boellner said.
But it’ still much better than Ohio’s bank averagd of 2.5 percent as of the third quarter, accordiny to the Tighter loan standards, common these days amony banks, haven’t been an issue at creditt unions. Harris said he hasn’tr heard of any credit unionsd making it tougher to geta “Nothing has changed here,” said Steve CEO of , Greater Cincinnati’e second-largest credit union with $350 million in assets. “We make loanzs to our members.” Last year “was probably one of the best years we’ve ever had,” he said. Assets and depositsz both grew13 percent, while loans jumped 20 he said.
Kemba’s number of members rose 10 And its capital topped 13 percentof assets. Why the solicd growth? Behler echoes other credit union nosubprime loans, no mortgage problemss and few delinquency Bad loans haven’t been anywhere near the problem for creditf unions that they have been for many banks. Ohio credit delinquency rate was 1.21 percent of assets in the third quarter of according to the Ohio CreditUnion League. It didn’t rise much from a year ago, when the rate was 1.11 And it’s less than half of Ohio banks’ 2.
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