Ohio Credit Unions: Financially Sound

Ohio credit unions are safe, stable, and sound in the midst of an otherwise uncertain financial services market recently dominated by alarming headlines. These headlines have prompted questions among the more than 2.6 million credit union members in Ohio about how credit union deposits are protected. The Ohio Credit Union League is reminding credit union members that their deposits are protected up to $250,000, and that credit unions are secure, strong, and ready to serve.

“Ohio credit unions are in very solid shape and are well positioned to expand service to members and communities,” said Paul Mercer, President of the League. “Our cooperative nature aligns credit unions as an excellent resource for our members during a sagging economy. The member-owned, community-centered structure of credit unions favors prudence and responsibility.”

The League is quick to point out specific reasons for high member and consumer confidence in credit unions.  There is the close supervision and regulation by the National Credit Union Administration and the Ohio Division of Financial Institutions. Credit union accounts are insured through the National Credit Union Share Insurance Fund, American Share Insurance, and/or Excess Share Insurance. There are the strong capital and liquidity positions. There are the cooperative values driving responsible lending.

Ohio is home to 422 credit unions serving 2.6 million credit union members. In aggregate, these credit unions hold $18.0 billion in assets, $15.3 billion in shares, and $11.7 billion in loans. Across Ohio, credit union capital reserves total more than $2.31 billion. The average Ohio credit union has about $42.65 million in assets and 6,230 members. At 12.41%, the average Ohio credit union net worth ratio, the key measure of capital and strength, is more than twice the level defined as “adequately capitalized” in federal law.

“The bottom line,” said Mercer, “is that Ohio credit unions are financially sound. Credit unions do a lot of good for Ohio consumers and communities.”