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BANKING |
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CREDIT UNIONS
Credit unions, generally set up by groups of individuals with a common link, such as membership in a labor union, are not-for-profit financial cooperatives that offer personal loans and other consumer banking services. Originating in Europe, the first credit union in this country was formed in Manchester, New Hampshire in 1909. Credit unions now serve more than 80 million people in the United States.
In 1934 President Roosevelt signed the Federal Credit Union Act into law, authorizing the establishment of federally chartered credit unions in all states. The purpose of the federal law was “to make more available to people of small means credit for provident [provisions for the future] purposes through a national system of cooperative credit...” In 1970 the National Credit Union Administration, which charters and supervises credit unions, was created along with the National Credit Union Share Insurance Fund, which insures members’ deposits. Individual credit unions are served by 28 federally insured corporate credit unions, which provide investment, liquidity and payment services for their members.
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FEDERAL CREDIT UNIONS AND FEDERALLY INSURED STATE-CHARTERED
CREDIT UNIONS, 1980-2007
(End of year)
|
1980 |
1990 |
2000 |
2005 |
2006 |
2007 |
| Operating credit unions | | | | | | |
| Federal | 12,440 | 8,511 | 6,336 | 5,393 | 5,189 | 5,036 |
| State | 4,910 | 4,349 | 3,980 | 3,302 | 3,173 | 3,065 |
| Number of failed institutions | 239 | 164 | 29 | 15 | 16 | 12 |
| Members (000) | | | | | | |
| Federal | 24,519 | 36,241 | 43,883 | 47,914 | 48,254 | 48,474 |
| State | 12,338 | 19,454 | 33,705 | 36,896 | 37,499 | 38,363 |
| Assets ($ millions) | | | | | | |
| Federal | $40,092 | $130,073 | $242,881 | $377,826 | $394,130 | $417,579 |
| State | 20,870 | 68,133 | 195,363 | 300,871 | 315,817 | 335,885 |
| Loans outstanding ($ millions) | | | | | | |
| Federal | 26,350 | 83,029 | 163,851 | 249,521 | 270,418 | 289,170 |
| State | 14,852 | 44,102 | 137,485 | 208,734 | 223,917 | 237,755 |
| Shares ($ millions) | | | | | | |
| Federal | 36,263 | 117,892 | 210,188 | 321,831 | 333,914 | 349,101 |
| State | 18,469 | 62,082 | 169,053 | 255,588 | 267,274 | 283,298 |
| Source: National Credit Union Administration. |
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CREDIT UNION MEMBERS, 1980-2007
(000)
Source: National Credit Union Administration.
| - From 1980 to 2007 federal and federally insured state credit union assets grew from $61 billion to $753 billion. In 2007 assets increased by $44 billion, or 6.1 percent, from 2006.
- There are currently fewer than 500 nonfederally insured state-chartered credit unions.
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ASSETS AND LIABILITIES OF CREDIT UNIONS, 2003-2007
($ billions, end of year)
|
2003 |
2004 |
2005 |
2006 |
2007 |
| Total financial assets | $617.2 | $654.7 | $685.7 | $716.2 | $758.7 |
| Checkable deposits and currency | 41.5 | 40.2 | 38.1 | 44.4 | 43.3 |
| Time and savings deposits | 27.1 | 26.4 | 21.9 | 17.0 | 17.0 |
| Federal funds and security repos (1) | 1.6 | 4.1 | 6.7 | 5.1 | 2.5 |
| Credit market instruments | 516.6 | 556.4 | 592.6 | 622.7 | 657.9 |
| Open market paper | 0.7 | 0.8 | 0.8 | 1.0 | 0.4 |
| U.S. government securities | 103.1 | 102.0 | 94.1 | 79.9 | 78.8 |
| Treasury | 8.8 | 8.9 | 7.7 | 7.4 | 10.4 |
| Agency- and GSE (2)-backed securities | 94.3 | 93.1 | 86.4 | 72.5 | 68.4 |
| Corporate and foreign bonds | 24.3 | 25.0 | 23.5 | 30.6 | 34.6 |
| Home mortgages | 182.6 | 213.2 | 245.6 | 276.6 | 308.4 |
| Consumer credit | 205.9 | 215.4 | 228.6 | 234.5 | 235.7 |
| Mutual fund shares | 4.1 | 3.1 | 2.2 | 2.1 | 2.1 |
| Miscellaneous assets | 26.3 | 24.5 | 24.2 | 24.9 | 35.9 |
| Total liabilities | $561.5 | $595.2 | $622.7 | $648.7 | $688.2 |
| Shares/deposits | 545.0 | 574.5 | 596.1 | 620.6 | 652.3 |
| Checkable | 66.5 | 74.1 | 81.1 | 72.6 | 73.7 |
| Small time and savings | 424.9 | 440.4 | 452.5 | 483.0 | 508.7 |
| Large time | 53.6 | 60.0 | 62.5 | 65.0 | 69.9 |
| Other loans and advances | 9.1 | 11.4 | 14.7 | 18.9 | 32.3 |
| Miscellaneous liabilities | 7.4 | 9.3 | 11.9 | 9.2 | 3.6 |
(1) Security repurchase agreements; short-term agreements to sell and repurchase government securities at a specified date and at a set price.
(2) Government-sponsored enterprise.
Source: Board of Governors of the Federal Reserve System, June 5, 2008. |
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CREDIT UNION DISTRIBUTION BY ASSET SIZE, 2007 (1)
(End of year)
Asset size ($ millions) |
Number of credit unions |
Percent change
from Dec. 2006 |
Assets
($ millions) |
Percent change
from Dec. 2006 |
| $0 to $0.2 | 143 | -9.5% | $16 | -11.4% |
| $0.2 to $0.5 | 291 | -2.7 | 101 | -2.7 |
| $0.5 to $1 | 378 | -7.6 | 281 | -8.2 |
| $1 to $2 | 578 | -4.3 | 850 | -4.5 |
| $2 to $5 | 1,117 | -5.7 | 3,797 | -5.6 |
| $5 to $10 | 1,202 | -5.1 | 8,741 | -5.1 |
| $10 to $20 | 1,210 | -3.1 | 17,429 | -3.1 |
| $20 to $50 | 1,410 | -3.2 | 45,403 | -3.1 |
| $50 to $100 | 797 | 1.0 | 56,104 | 1.6 |
| $100 to $200 | 532 | -0.2 | 75,082 | -0.5 |
| $200 to $500 | 429 | 1.4 | 133,107 | 1.6 |
| $500 to $1,000 | 182 | 3.4 | 124,964 | 4.4 |
| More than $1,000 | 127 | 9.5 | 310,711 | 14.3 |
| Total | 8,396 | -5.2% | $776,588 | 8.0% |
| (1) From Credit Union Call Reports.
Source: Credit Union National Association. |
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TOP TEN U.S. CREDIT UNIONS BY ASSETS, 2007 (1)
($ millions)
Rank |
Company |
Assets |
| 1 | State Employees' | $15,012.9 |
| 2 | Boeing Employees | 8,124.0 |
| 3 | The Golden 1 | 6,586.0 |
| 4 | Alliant | 4,895.5 |
| 5 | San Diego County | 4,051.1 |
| 6 | Wescom Central | 3,788.0 |
| 7 | Star One | 3,572.2 |
| 8 | Citizens Equity First | 3,381.5 |
| 9 | Vystar | 3,337.3 |
| 10 | Pennsylvania State Employees | 2,958.5 |
| (1) Federally insured credit unions.
Source: National Credit Union Administration. |
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