12 www.sdbj.com MAY 31, 2021
SPECIAL REPORT: FINANCE
San Diego Credit Unions See Record Numbers in Deposits Area Firms Grow Assets and Memberships By FRED GRIER
The global pandemic created unexpect- unions following the financial crisis in union experienced in the region and was started by City of ed opportunity and challenges for the fi- 2008 — It’s a typical flight-to-safety re- a 18% increase for San Diego employees. nancial industry. sponse when there is uncertainty in the the entire year President and CEO Lisa Paul-Hill, not- Many credit unions based in San Diego market. When consumers are unsure in from a deposit ed its deposits grew substantially in 2020 experienced a record surge in lending and times of crisis, they turn to federally in- growth standpoint, crediting the government stimulus as well uptick in membership in the last quarter sured instruments,” said Campbell. reaching close to as “flight-to-safety response” due to the of 2020. Other challenges credit unions “With stay-at-home orders, closures of $116 million. uncertainty in the market. faced included how to operate and grow non-essential businesses and travel restric- “We didn’t see “There was so much unknown during in a post-pandemic world. tions, consumers were spending less, which growth in mem- the pandemic year. People remembered The San Diego Business Journal had a means saving more,” she said. bership in terms what happened during the Great Reces- chance to discuss the biggest credit union Founded in 1961, Mission Federal Cred- of new members, Jim Harris sion, causing them to prioritize saving over trends in 2020-2021, the importance of it Union is the second-largest financial co- however we did President and CEO borrowing money,” she said. “We immedi- building relationships with members and operative based in the region. In 2020, the see the account USE Credit Union ately jumped into the SBA Paycheck Pro- its biggest accomplishment. credit union grew from $4 billion to $5 balances of our members expand signifi- tection Program, which allowed our loan billion in a single year. cantly,” said Harris. “As a financial insti- growth to increase.” Record-High Deposits “We have seen growth across all cate- tution, it’s great to see a bigger proportion “Although there was a decline in over- The California Credit Union League re- gories, but our overall new real estate of customers’ financial resources expand all loan growth, which the California ported record-high levels in 2020 seeing loans originat- because that creates a relationship, loyal- Credit Union League reported, we saw a 20% increase in total deposits to $19.4 ed and funded in ty, and ‘stickiness,’ which is good for both the complete opposite — we rose 2%,” she billion, compared with the same period 2020 of over $1 bil- the short-term and long-term perspective.” said. “Our total deposits also increased by in 2019. lion was amazing, USE Credit Union also provided $2 bil- 13% and membership grew 5%.” The league reported a 3% year-over-year and record-setting lion worth of loan forbearances on the Cabrillo Credit Union Interim CEO increase in credit union membership, with for us,” said Deb- mortgage side, and $10.5 million in con- Pete Sainato, said it gave back $2.5 mil- total lending dropping 10% to $13 billion. ra Schwartz, pres- sumer loans to its members. lion in member benefits in 2020, adding Nationally, credit union membership ident and CEO “We provided over $500,000 in emer- that the credit union also saw significant has grown by more than 20% in the past of Mission Fed. gency loans and fee waivers and granted asset growth this past year. five years, and 31% in the past 10, surging “Membership $30,000 in fee waivers each week,” he said. from 90.5 million in March 2009 to 118.6 growth was spec- Debra Schwartz “This year, we’re seeing 99% of those loans Booming Housing Market million in March 2019, according to the tacular, especial- CEO being paid back. It speaks to the sound- Along with historic low rates, there has Credit Union Times. ly considering we Mission Federal ness of our members and I’m proud of been a real estate boom in San Diego with The organization attributes much of the were in a pandem- Credit Union the USE team for doing what needed to many wanting to upgrade their living sit- rising business in those divisions due to ic. Our savings growth is also impressive.” be done in such a short time frame.” uations. federal stimulus and lower interest rates. “We also had the ability to focus on our Pacific Marine Credit Union, which MyPoint Cred- California Union Leagues’ spokesman San Diego community. With the gener- historically drew members from the Ma- it Union President Matt Wrye said the organization wasn’t all osity of our members and the San Diego rines, rebranded in 2018 as Frontwave and CEO David that surprised by the substantial growth. community, we raised and donated a total Credit Union, with the explicit purpose Brooke, said the “The San Diego region will play an in- of $680,342 for local non-profit organiza- of pointing out local credit union tegral part in economic growth and con- tions in 2020,” she said. “This has been the that they no lon- has experienced sumer spending as the second quarter of proudest moment of my career.” ger serve a limited its largest growth 2021 kicks into gear,” he said. President and audience. in two areas — real CEO Todd Lane at President and estate lending and Low Interest Rates California Coast CEO Bill Birnie of commercial real David Brooke Several of the biggest credit unions in Credit Union, the Frontwave Credit estate lending. President and CEO San Diego, reported notable growth in line third-largest firm Union, said the “Borrowers have MyPoint with the Leagues’ findings. in the region, said credit union saw taken advantage of Credit Union San Diego County Credit Union expe- the primary drivers a 25% increase in this low interest rate environment to refi- rienced significant overall growth in 2020. behind the growth deposits, reaching nance their homes and commercial real es- Bill Birnie Total assets grew from $8.47 billion at the in deposits includ- $191 million in to- CEO tate properties to significantly reduce their end of 2019 to $9.69 billion at the end of ed three factors: tal, with roughly Frontwave payments,” he said. “In the last month, we 2020, seeing 14% growth. Its assets are federal stimulus Todd Lane $58 million com- Credit Union have also experienced a spike in business continuing to climb in 2021, and have now payments, loan President and CEO ing in during the deposit accounts as entrepreneurs are start- California Coast reached $10.2 billion. payment forbear- Credit Union month of April last year. ing up new businesses as the pandemic be- Teresa Camp- ance programs, and He also noted the firm is up over 10% gins to wind down.” bell, president and a general desire to build savings/checking in the first quarter of this year due to the MyPoint has also implemented a chief executive at to withstand a potential economic crisis. second wave of the federal stimulus. streamlined payment deferral program San Diego Coun- “Large consumer purchases such as au- “We're not a small business lender but allowing the credit union to grow and ty Credit Union, tomobiles slowed significantly during 2020 we did participate in the Paycheck Protec- strengthen the relationship with its mem- has credited much as consumers were reluctant to take on new tion Program, which was great for us,” said bers. of that growth to debt during the pandemic. Also, many con- Birnie. “We observed the way the banks “When the pandemic began, we quickly historically low sumers used available funds to pay off un- were handling it and we did it differently implemented a streamlined payment de- interest rates on secured debt (credit card) and were reluc- and better. Moving forward, we believe ferral program to help our members in mortgages during tant to take on new debt,” he said. we will earn more local business accounts need. As a result, we provided over 600 the pandemic. Teresa Campbell as their frustration with banks continues payment deferments on loan balances of “We saw a sim- CEO Helping Members to grow.” over $32 million,” said Brooke. “We are ilar trend in the San Diego County At USE Credit Union, president and Founded in 1934, Wheelhouse Credit proud of the way we conducted business Credit Union growth in credit CEO Jim Harris, he noted the credit Union, is the second-oldest credit union during the pandemic.” MAY 31, 2021 www.sdbj.com 13
The pandemic has also accelerated the adoption of credit unions’ remote delivery services. For example, MyPoint rolled out its Person-to-Person Zelle payment product and its usage grew quickly. More members are using mobile banking, including the chat feature that allows them to securely converse with a contact center staff from the convenience of their home, said Brooke. “The average age of a member at Front- wave is 34, which is 20 years below the in- dustry average,” said Frontwave CEO Birnie. “This past month, we passed the 2 million monthly-login mark for online and mobile, moving $90 million in a single month. “Offering digital solutions is really import- ant to us,” he said. Mission Fed’s Schwartz said, expanding its digital and online options for members was another key driver for the growth, adding that members value its focus, communication, and the ability to keep their money secure.
2021 Outlook In 2021, credit unions are still seeing an influx in deposits, largely due to the latest Charts courtesy of Credit Union Journal. round of stimulus payments. Credit Unions have outpaced their bank rivals continuing to grow assets at a faster rate. California Coast’s Lane said he believes membership growth is and will continue to be brisk as credit unions helped members improve their financial health. “Credit unions reduced and elim- inated many con- sumer fees during the pandemic, of- fered no-interest or low interest emer- gency loans to both members and small businesses, provided loan payment for- Pete Sainato bearance and many Interim CEO other things around Cabrillo Credit Union helping credit union members during the cri- sis,” said Lane. “Unlike some financial service providers, we do the right things by our members and the community without having to be directed to do so by our governor or others,” he said. Other local industry leaders predict the deposit growth will slightly decline after the California economy opens up fully af- ter June 15. Charts courtesy of Credit Union Journal. “I don’t think the record growth will con- Credit Union membership has increased and other categories including assets and loans are on the rise. tinue throughout all of 2021, but we’ve cer- tainly seen the benefit,” said USE’s Harris. Post-pandemic, Wheelhouse’s Paul-Hill ex- pects there will be more flexibility for work- ing parents and long-haul commuters, creat- ing a new standard for the traditional in-person industry. “The ability to have that hybrid work environment will be attractive to the workforce as more people realize that some employ- ees are more pro- Lisa Paul-Hill ductive working President and CEO from home, while Wheelhouse others thrive in a Credit Union collaborative work environment,” she said. “Being able to provide both options will be a win-win for our employees.” “One of the many things that I admire about Cabrillo, is that it has always been a strong community credit union,” said Cabril- lo’s Sainato. “Looking forward, I expect cred- it unions will be more relevant today than they were before the pandemic, they stepped up and assisted the community when times Charts courtesy of Credit Union Journal. were difficult.» n Experts predict investments into assets are likely to continue into 2021. 14 www.sdbj.com MAY 31, 2021
CREDIT UNIONS Ranked by assets as of March 31, THE LIST CREDITRanked UNIONS by assets as of March 31, 2021 2021 Total assets: Net income Return on (millions) (loss) average assets % Capital to # of local: Rank Credit union Mar. 2021 (millions) (-) asset ratio Members (Last Address Mar. 2020 2021 2021 2021 Employees CEO year) Website Phone % + (-) 2020 2020 2020 Branches Year est. locally San Diego County Credit Union $10,251.00 425,500 Teresa 1 (1) $26.00 1.04 14.61 Campbell 6545 Sequence Drive, San Diego 92121 $8,745.26 $20.13 0.94 16.24 830 (1) www.sdccu.com 877-732-2848 17 42 1938
Mission Federal Credit Union $4,915.93 $13.82 1.15 267,217 Debra 2 $4,302.84 11.75 Schwartz 10325 Meanley Drive, San Diego 92131 $10.42 (1) 12.60 603 (2) www.missionfed.com 800-500-6328 14 1.71 34 1961
California Coast Credit Union $3,318.80 192,054 Todd Lane 3 $6.06 0.74 10.39 542 9201 Spectrum Center Blvd., San Diego 92123 $3,002.69 $5.23 0.74 10.88 1929 (3) www.calcoastcu.org 858-495-1600 11 26
USE Credit Union $1,241.99 59,891 Jim Harris 4 ($0.41) (0.14) 8.33 177 10120 Pacific Heights Blvd., Suite 100, San Diego 92121 $1,043.22 $0.48 0.18 9.82 1936 (4) www.usecu.org 866-873-4968 19 9
Frontwave Credit Union $1,161.06 113,119 William Birnie 5 $1.95 0.70 10.24 263 1278 Rocky Point Drive, Oceanside 92056 $920.33 $0.19 0.08 12.30 1952 (5) frontwavecu.com 800-736-4500 26 14
MyPoint Credit Union $642.29 29,656 David Brooke 6 $0.48 0.30 7.87 129 9420 Farnham St., San Diego 92123 $539.26 $0.53 0.40 8.55 1948 (6) www.mypointcu.com 858-495-3400 19 7
Cabrillo Credit Union $417.76 24,844 Michael 7 $0.19 0.19 7.68 87 DeShazo 10075 Carroll Canyon Road, San Diego 92131 $336.50 $0.29 0.34 9.64 (7) www.cabrillocu.com 858-547-7400 24 4 1955
Wheelhouse Credit Union $384.39 28,545 Lisa Paul-Hill 8 $0.13 0.13 7.82 86 320 B St., San Diego 92101 $333.46 ($0.02) (0.03) 8.94 1934 (8) www.wheelhousecu.com 619-297-4835 15 4
East County Schools Federal Credit Union $140.47 4,455 Steve Devan 9 ($0.06) (0.18) 7.99 19 1069 Graves Ave., Suite 100, El Cajon 92021 $127.43 $0.14 0.45 8.78 1956 (9) www.eastcountyschools.org 619-588-1515 10 1
San Diego Firefighters Federal Credit Union $133.22 3,669 10 $108.01 ($0.00) 0.00 6.44 15 Ed Daley 4926 La Cuenta Drive, San Diego 92124 $0.03 0.11 7.87 1984 (10) www.sdffcu.org 619-283-5477 23 1
Paradise Valley Federal Credit Union $87.87 4,471 11 $78.67 ($0.05) (0.23) 10.38 Bud Schaffner 2700 E. Fourth St., National City 91950 ($0.00) (0.01) 11.42 19 1957 (11) www.paradisevalleyfcu.org 619-475-4313 12 2
North County Credit Union $70.73 4,054 12 $64.23 $0.01 0.04 8.86 Gary Sisk 17045 Via del Campo, San Diego 92127 $0.01 0.09 9.67 11 1953 (12) www.northcountycu.org 858-487-1880 10 2
Escondido Federal Credit Union $58.22 2,379 13 $45.26 $0.09 0.61 10.13 Diana Wettig 201 N. Broadway, Escondido 92025 $0.12 1.11 12.45 9 1959 (13) www.escondidofcu.org 760-839-4606 29 2
Employee's Choice Federal Credit Union $20.92 1,144 14 $17.10 $0.01 0.27 9.44 Aletta Bostock 266 S. Magnolia Ave., Suite 101, El Cajon 92020 $0.01 0.35 11.19 4 1960 (14) www.employeeschoice.org 619-579-0941 22 2
Inland Federal Credit Union $15.21 1,402 15 $14.44 $0.01 0.17 7.10 Jeff Lower 570 Broadway, El Cajon 92021 $0.01 0.40 7.33 5 1960 (15) www.inlandfederal.org 619-444-5656 5 1
Chula Vista City Employees Credit Union $3.38 538 Lydia 16 ($0.00) (0.06) 7.03 2 DeNecochea 276 Fourth Ave., Chula Vista 91910 $2.94 $0.01 0.90 8.17 (16) na 619-691-5240 15 0 1967 na Not applicable Business Journal. Eric Alderete, [email protected]. This list may not be reprinted in whole or in part without prior written permission from the Sources: The National Credit Union Administration. editor. Some companies have declined to participate or did not return a survey by press time. It is not the intent of this list to endorse the participants Due to rounding off, some percentages appear to be incorrect. or to imply a company's size or numerical rank indicates its quality. To the best of our knowledge, this information is accurate as of press time. While every effort is made to ensure the accuracy and thoroughness of (1) As reported on Mar. 31, 2020 the list, omissions and typographical errors sometimes occur. Please send corrections or additions to the Research Department at the San Diego
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