Virginia-Based Credit Unions Aiding Members as Pandemic's Hardships Linger

CONTACT:
Lewis Wood
Vice President of Public Relations and Communication
Virginia Credit Union League
800.768.3344, ext. 629
lwood@vacul.org

Virginia’s 116 member-owned, not-for-profit credit unions hit major milestones at mid-year 2020, reaching 14.3 million total memberships and $194 billion in combined assets, according to information from credit unions’ federal regulator, the National Credit Union Administration.

“Many Virginians have had to shoulder financial worries and hardships these past six months as we’ve worked through the economic challenges brought on by the pandemic,” noted Virginia Credit Union League President Rick Pillow, “but credit union members have found a safe harbor and trusted financial partner in their credit union.”

Credit unions have supported members during the pandemic by working with those in need on an individual basis, evaluating members’ circumstances and then providing individualized assistance. Credit unions are providing mortgage loan deferment; skip-a-pay programs; no penalties on early withdrawal fees on certificates and other special funds; special emergency loans; and business loan deferments.

“Credit unions remain the consumer-friendly choice for financial services,” noted Pillow. “Virginia’s credit unions provided an estimated $1.9 billion in direct financial benefits to their members during the past year, thanks to our superior rates on both loans and savings, and to fewer and less-costly fees. Credit unions’ not-for-profit, member-owned structure means they put the needs of their member-owners first and that’s something more Virginians have come to appreciate.”

Credit unions across the Commonwealth and nation have added record levels of new members since the financial crisis more than a decade ago. Total memberships for Virginia-based credit unions have doubled since year-end 2010, reaching 14.3 million as of June 30, 2020, according to data from the NCUA.

While the pandemic did temper earnings at some Virginia-based credit unions in the second quarter, lending in most categories remained relatively strong with members taking advantage of low mortgage and auto loan rates.

Virginia-based credit unions saw lending grow 7.6% for the second quarter, with member business loans, used auto loans and home equity/second mortgage loans seeing the strongest growth.

Twenty Virginia-based credit unions participated in the Paycheck Protection Program through the U.S. Small Business Administration, supporting businesses through the pandemic and enabling them to keep employees on the payroll. Those 20 credit unions originated 9,419 loans, totaling $375.1 million. Nationally, 833 credit unions originated 70,491 PPP loans totaling $8.34 billion, with an average loan size of $48,912 and a median of $33,485.

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About the Virginia Credit Union League

The Virginia Credit Union League is the state trade association for the Commonwealth’s not-for-profit, member-owned credit unions. Through leadership, vision and the trust of our credit unions, the League is ensuring the growth, success and diversity of Virginia’s credit unions. Learn more at vacul.org.