PORTLAND – The marketplace and consumer sentiment continued to fuel growth in Maine’s credit unions for the first six months of 2011. The Maine Credit Union League’s mid-year statistics for the period from January 1 – June 30, 2011, showed that credit unions experienced across the board increases in all key categories including assets, savings, lending and membership. The statistics also found the growth to be even more significant when compared with the same period in 2010.
Combined assets at Maine’s credit unions rose to $5.56 billion, up 3% since the start of the year, loan growth also remained positive, a contrast to most other financial institutions in state and nationally, with real estate loans increasing an impressive 5.1%, savings increased by $126 million, up 2.7% from the end of the year, and the influx of consumers to credit unions continued with a 0.7% growth for a net gain of 4,388 in the first six months of 2011. Membership at Maine’s credit unions is now at 615,108.
For the three credit unions with ties to Franklin County, all three placed in the Top 35 in assets including one in the Top 10. University CU, which has a branch in Farmington, was #7 with $201 million in assets; Otis FCU of Jay was #18 at $122 million in assets; and Franklin-Somerset FCU, which has branches in Franklin County in Farmington and Kingfield, came in at #31 with $69 million in assets.
John Murphy, President of the Maine Credit Union League, said, “As consumers continue to seek value in financial services, especially as economic challenges remain for many Mainers, Maine credit unions are well-positioned to provide value and benefits that consumers seek. We expect this trend to continue, as other financial institutions introduce new fees and increase existing ones, and consumers are growing weary of fees. Meanwhile, Maine credit unions offer products and services without fees, such as no-fee debit cards, free checking at most credit unions, the largest no-fee ATM Networks in Maine, a shared branch network with access to nearly 150 locations in Maine and 4,300 nationwide, as well as the sophisticated technology to access and conduct transactions. Many credit unions in Maine are reporting hearing from consumers interested in using a credit union, as a result of the recent decision by a major bank, with other banks expected to follow suit, to impose a $5 a month fee on debit cards. Maine credit unions are a great deal, and more consumers are discovering that everyday.”
With mortgage rates at historic lows, the League said that Maine’s credit unions are also experiencing record volumes as consumers rush to take advantage of not only the low interest rate environment but also low home prices where sellers are motivated to work with buyers to make the sale.
“Maine credit unions are well-capitalized at higher levels than other state and national financial institutions, and have exceptionally strong asset quality. Both figures reinforce the strong position of credit unions in an otherwise uncertain financial marketplace,” Murphy added.
