ONTARIO, Calif.– During 2016 California’s credit unions generated a $17-billion economic impact in the state, while Nevada’s credit unions were responsible for $803 million in the state economy, according to a first-ever report that details jobs created, economic contributions, benefits to members, and community lending by credit unions in the two states.
Commissioned by the California and Nevada Credit Union Leagues and independently completed and published by ECONorthwest in Portland, Ore., the leagues said the “combined ripple effect in the broader economy can’t be ignored as (CUs’) financially cooperative, not-for-profit model reinvests local dollars back into local economies.”
“In fact, the economic impact of all credit unions in California and Nevada, both locally headquartered and non-local, is the same as some of the largest corporations in America, including Kraft Heinz, General Mills, Xerox, and Facebook—each having approximately $17-$18 billion in annual revenue,” the leagues said.
(View the individual California and Nevada one-page snapshots or read below for the study’s findings)
The ECONorthwest study looked at balance sheet, regulatory call report, and operational data to come to its conclusions. Here is what the report found:
State Overview
- $17 billion—total economic activity supported by credit union spending/operations ($6 billion in direct spending by credit unions)
- 104,861—total jobs supported by credit union spending/operations (30,002 in jobs at credit unions)
Nevada
- $803 million—total economic activity supported by credit union spending/operations ($390 million in direct spending by credit unions)
- 5,453—total jobs supported by credit union spending/operations (2,076 in jobs at credit unions)
Benefit to Members
- In California (10.8 million credit union members), $1.5 billion—total economic benefit from member savings
- Nevada (513,303 credit union members), $54.6 million—total economic benefit from member savings
Community Lending
California
- 198,000 mortgage loans ($55 billion in lending)
- 2 million auto loans ($32.2 billion in lending)
- 2 million credit cards ($5.2 billion in lending)
- 28,000 small business loans ($833 million in lending)
Nevada
- 6,000 mortgage loans ($1.2 billion in lending)
- 57,000 auto loans ($917 million in lending)
- 51,000 credit cards ($84 million in lending)
- 700 small business loans ($22 million in lending)
According to the leagues, the economic-impact report was completed by ECONorthwest through an independent analysis of credit unions surveyed and used a “multiplier-effect” model to extrapolate its economic conclusions. Economic-impact data represents both locally-headquartered institutions and out-of-state institutions with a local presence.