Credit Unions Post Record Market Share Growth in 3Q

Alix Patterson
Callahan & Associates

Washington, DC The complete, third-quarter data shows that the $964.2 billion credit union movement opened 137,000 more checking accounts, an increase of 3.8 percent, as membership increased by just 0.7 percent. “Consumers are seeking alternatives,” says Jay Johnson, executive vice president of Callahan & Associates. The trend indicates that consumers want a relationship, not just a transaction. This trend has been picked up over the last 24 months as shown in the attached graphs.

Another indication of the power of the cooperative model was that credit unions recorded the highest market share ever of first-mortgage originations. The 6 percent share year-to-date is even greater than that recorded at the trough of the recession when credit unions were one of the few options still active. Credit unions have been especially active in refinancing members’ mortgages. The total originations for 2011 of $54.4 billion are giving members access to some of the lowest first-mortgage rates ever. This activity is expected to pick up even further when the new HARP refinancing guidelines are issued this week. 


Credit unions’ momentum is also demonstrated in their 92 basis points in pre-assessment earnings.  “The core earnings engine seems to be back,” Johnson says. “We’re almost back to normal in terms of our earnings.” Total capital, which includes the net worth and loan-loss account, now exceeds $107 billion.

This growing momentum will provide consumers even more value in 2012. “Already we are seeing these nine-month results confirmed with announcements of record-setting patronage dividends for this year,” Johnson says. “Credit unions continue to provide members unique value in multiple ways. That is the advantage of the cooperative model.”

This analysis of credit union system performance was part of the quarterly Trend Watch series provided by Callahan & Associates. The presentation, which will be available on, also highlighted some state-by-state performance results.  For example credit unions’ share of deposits on a state basis is highest in Alaska at 38.7 percent versus a national average of 9.1 percent for the country overall.  Complete results for all credit unions for the third quarter are available to 2012 Credit Union Directory subscribers through Directory Online at



More News