Printer Friendly

LOCAL CREDIT UNION DEFIED ECONOMY WITH LENDING SURGE

 LOCAL CREDIT UNION DEFIED ECONOMY WITH LENDING SURGE
 SAN JOSE, Calif., Sept. 16 /PRNewswire/ -- One San Jose-based


financial institution is out-performing the seriously lagging lender market. The $115 million Valley Credit Union (VCU) experienced a second quarter lending surge that pushed total loans up 10 percent, an $8.1 million increase for the quarter to a total of $89.4 million.
 The thrust for the period was a bill consolidation campaign that hit home with a special 12 percent interest rate. Over 1,100 bill consolidation loan applications flooded the three month campaign, as anxious consumers try to whittle down the cost of outstanding debt. "Our analysis on these loan applications confirms that consumer confidence in an immediate national recovery is still waning, defying the expected pre-election boost," says Ted Dennis, president of the 26,000 member credit union serving the area's vast telecommunications and health care industry.
 VCU's deposits during the second quarter totaled $107.3 million, while earnings reached $408,571 for the first half of the year. Charge-offs and delinquencies are holding steady at a low 0.76 percent, far below those being experienced by other financial institutions.
 "Projections for the second half of the year remain cautiously optimistic," says Dennis. "All of California has been hit hard by the recession, but it seems to be evidenced more in Southern California than here in the northern urban areas characterized by a more diverse economy," Dennis says.
 "What we are seeing is an extremely cautious attitude toward spending. People are holding onto the jobs they have and cutting back on expenses, fearful the economy will worsen before it gets better. That translates into a general slow-down that drags across the entire balance sheet. There are few signs that anything dramatic is going to move us off that mark before the first of the year."
 Valley Credit Union is a profit-sharing financial institution open to all employees of AT&T, PacBell, Summit Medical Center, Childrens Hospital, Santa Clara County Architects and more than 500 businesses and organizations spanning the coast from Marin to Santa Cruz County. Administrative headquarters for the credit union are located at 2635 Zanker Road in San Jose. Three additional branch offices are located in Sunnyvale at 1270 Oakmead Parkway; in Oakland at 3334 Webster St.; and in San Jose at 100 Park Center Plaza.
 -0- 9/16/92
 /CONTACT: Anthony Jones, 408-955-1302, or Sharon Chapo, 619-523-0907, both of Chapo Marketing Communications, for Valley Credit Union/ CO: Valley Credit Union ST: California IN: FIN SU:


LS-JB -- SD001 -- 0078 09/16/92 11:45 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 16, 1992
Words:428
Previous Article:DR. C. EVERETT KOOP TO ADDRESS NATIONAL HEALTH CARE ISSUES
Next Article:CONTINENTAL BANK COMPLETES $45 MILLION PRIVATE PLACEMENT FOR FRANKLIN EQUITY LEASING
Topics:


Related Articles
Japan not to recapitalize lenders without 4% capital ratio+.
Time is short; we must act now.
CUs find the fuel to rev up in struggling auto lending market.
Desolate economic landscape doesn't engulf Michigan CUs.
Long-time CU supporter Velazquez underscores need for lending flexibility.
Michigan first steps up aid efforts.
Building community unions: Utah's credit unions work for their members.
N.C. Sentar talks job creation with CUs.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters