Asset size rises at L.A. County credit unions.

Loan portfolios grow at 22 of 25 institutions on List

L.A. COUNTY - Hughes Aircraft Employees Federal Credit Union, with more than 154,000 members and nearly $1.6 billion in assets, again tops The List of the largest credit unions in Los Angeles County, based on asset size (see page 20).

Like 23 out of 25 credit unions on The List, Manhattan Beach-based Hughes increased its asset size in 1995. Hughes increased its asset size by about $100 million, or 9.3 percent, in 1995, compared with 1994.

Likewise, 22 out of 25 credit unions on The List increased the size of their loan portfolios. Hughes increased its loan portfolio size by $64 million, or 9.3 percent.

Kathleen Gronnerud, spokeswoman for the Hughes credit union, said her employer is increasing the size of both its loan portfolio and its asset base because members are borrowing more.

"We think it has something to do with the fact that the economy is improving," Gronnerud said.

California credit unions increased asset size by an average of 7.7 percent in 1995 over 1994, according to the National Credit Union Administration. Credit unions statewide increased their loan portfolio size by an average of 7.3 percent, according to the National Credit Union Administration.

On the List, nine credit unions reported loan portfolio growth rates above the California average.

Of those, six had loan growth rates of 10 percent or higher. They are: No. 4-ranked, L.A.-based Los Angeles Teachers Credit Union, No, 9-ranked, El Segundo-based Xerox Federal Credit Union, No. 11-ranked, L.A.-based Fire & Agriculture Credit Union, No. 14-ranked, West Covina-based First Financial Federal Credit Union, No. 20-ranked, L.A.-based Farmers Insurance Group Federal Credit Union, and No. 21-ranked, Glendale based First City Savings Federal Credit Union.

On the List, seven credit unions posted asset growth rates higher than the California average.

And four of those had asset growth rates of 10 percent or higher, including No. 3-ranked Pasadena-based Wescom Credit Union, Xerox Federal Credit Union, First City Savings Federal Credit Union and No. 23-ranked, Irwindale-based SCE Federal Credit Union.

At least three credit unions on the List, Hughes, No. 5-ranked Long Beach-based Long Beach Schools Federal Credit Union and No. 2-ranked Burbank-based Lockheed Federal Credit Union are planning to set up online banking services which members can access from their home computers.

The Long Beach Schools and Hughes credit unions plan to set up online banking services by the end of 1996, officials said. The Lockheed credit union plans to debut its online banking services this summer, said Sheri Fukumoto, marketing coordinator. Members will be able to move money from one account to another, check on accounts and pay bills from their home computers, Fukumoto said. Lockheed is working to provide the service in order to become more convenience for members, she said.

Mark Lowe, spokesman for the California Credit Unions League, which represents 700 credit unions around the state, said many large credit unions either have plans to set up online banking service or are investigating it. Some credit unions already offer online banking services, he said.

"I think credit unions are doing it because their members want it," Lowe said. The trend, however, is mostly confined to the larger credit unions, simply because the technology is too expensive for a smaller credit union, he said.

"Credit unions, like a lot of other businesses in the financial services arena, want to be in tune with the 21st century," Lowe said. "And online banking is going to be a big part of conducting financial transactions in the 21st century."