Northwest Credit Unions Outpace Banks in Year-Over-Year Deposit Increases

The most recent available data shows that Northwest credit unions’ deposit market share has remained steady in recent years, showing slight growth since 2010, while year-over-year deposit increases since 2011 show signs of economic recovery and credit union membership growth.

The most recent available financial data show that deposit totals for credit unions in Oregon and Washington grew at greater percentages than banks from 2011 to 2012, while overall deposit market share indicated slight year-over-year growth.

Based on deposits by branch, Northwest credit unions combined for 9.96 percent deposit growth in 2012, compared to 8.16-percent growth by banks in Oregon and Washington over the same period, which spans July 2011 through June 2012.

According to Dan Hein, the Northwest Credit Union Association’s (NWCUA) vice president of administration and finance, that growth can still be partially attributed to the “flight to safety” that was so common from 2008-10, when consumers sought a more secure location for their savings than the stock market.

“The most recent year-over-year increase is still padded by some residual flight to safety,” Hein said, “but it also reflects credit unions’ increase in membership in late 2011 and 2012.”

Deposit totals in Washington grew by 9.5 percent in 2012, with banks experiencing 6.84 percent growth. Washington’s credit union deposits had increased by just 3.31 percent in 2011, with banks’ deposits growing by 3.85 percent.

In Oregon, credit union deposits increased by 10.95 percent in 2012—their highest percentage of deposit growth since 2009—and edged the banks’ 10.51-percent increase. Oregon credit unions had experienced deposit growth of 2.87 percent in 2011, while Oregon’s banks checked in with 15.94-percent growth.

Oregon’s numbers in recent years are skewed by the fact that Bank of America’s deposit totals jumped from just under $7.5 billion in 2010 to more than $12.5 billion in 2011 and to more than $17.8 billion in 2012. No other financial institution in either state showed such aberrant deposit growth over the same period.

Credit unions in both states continued the recent trend of maintaining a fairly steady share of the deposit market. Northwest accounted for $48,772,770 in 2012, good for a 21.37 percent of the market and up from 21.09 percent in 2011.

Oregon credit unions held 18.96 percent of the state’s deposits in 2012, up from 18.89 percent in 2011, while Washington credit unions held 22.72 percent after having held 22.29 percent in 2011.

 

Questions or Concerns? Contact Matt Halvorson, Anthem Editor: mhalvorson@nwcua.org.