Name changes help New Mexico CUs achieve growth
ALBUQUERQUE, N.M. (9/28/15)--Name changes by two of New Mexico’s largest credit unions is one factor contributing to membership growth at New Mexico’s credit unions during the second quarter, according to the New Mexico Credit Union Association. Picking up members from large bank closures and mergers is another.
New Mexico Federal Educators CU became Nusenda CU in February, and U.S. New Mexico FCU changed its name to U.S. Eagle FCU in March. Both Albuquerque-based credit unions said they changed names to let people know that membership was not restricted to a specified employment group (Albuquerque Journal Sept. 24).
Nusenda CU’s membership grew nearly 10% in second quarter 2015 and rose 15% from January through August, said Anneliese Elrod, senior vice president strategic marketing and development. She told the Journal the credit union attributes its growth to many things, but one of the biggest changes this year was the new name.
U.S. Eagle FCU also saw a jump in membership after its name change, Manager Phil Forbert said. It gained about 1,000 new members a month, which spurred double-digit growth in its loan portfolio over last year.
Second-quarter membership growth for the state’s credit unions was 1.8%, up from 1.7% in the second quarter of 2014, according to the National Credit Union Administration’s (NCUA) Quarterly U.S. Map Review. That puts New Mexico at fifth in the nation for credit union membership growth.
NCUA’s review also indicated that New Mexico’s credit unions:
- Experienced the seventh-highest median annualized return on average assets, a net income indicator. Paul Stull, president of the New Mexico Credit Union Association, noted that the state’s credit unions are performing well and are able to sustain growth, increase capital and strengthen capital positions.
- Ranked 42nd in median loan growth, with $5.9 million in outstanding loans during second quarter. That is an increase of 3.4% from $5.9 billion. Loans are lagging because of the state’s anemic job growth and recover, Stull said.