Despite the challenges posed by the coronavirus pandemic and an economic downturn, United Federal Credit Union saw significant boosts across several key metrics in 2020.
The St. Joseph, Mich.-based credit union on Wednesday reported asset growth of nearly 14% for a total of $3.3 billion, along with return on average assets of 0.8%. The credit union remains well capitalized with a 10.21% capital ratio, well above the 7% minimum capitalization level required by the National Credit Union Administration.
Call report data shows earnings in 2020 were down by nearly 14% to $24.5 million as expenses rose by 10%, driven primarily by increases in facilities and staffing costs. Earnings in 2019 were up by about 5.2% year-over-year. Loan balances were down by 4%, due in part to a slowdown in auto lending, while credit card balances fell to $76.5 million, an 11% decline.
Noninterest income in 2020 rose by more than 41%, thanks in part to participation in the Paycheck Protection Program, and United has helped more than 1,100 members apply for those loans, United said in a press release.
The credit union last fall
Membership was essentially flat compared with 2019, according to call report data, though the credit union said use of online services soared, with 2020 seeing an 80% lift in online account openings and a 63% increase in online loan applications, according to the release. United also reported a 264% year-over-year increase in use of its online chat feature.
United FCU also donated $536,000 to philanthropic causes last year, according to the release, including more than $17,700 in December alone through its annual Pay it Forward campaign that lets employees donate to individuals and organizations they care about.
“While 2020 was a challenging year for many of us, United continued to hold strong in support of our membership,” CEO Terry O’Rourke said in the release. “As a credit union, we held by our namesake and operated as a united organization. I’m inspired by and grateful for the dedication of our team for carrying out an essential service, the loyalty and trust of our membership, and the partnership of regional nonprofit agencies across our entire footprint.”
