Credit Unions in Southern Nevada Generate $535 Million Impact

Credit unions serving members in Southern Nevada (two counties) recently generated a $535 million annual impact to the region’s economy, which supported 3,746 local jobs in various industries and also produced $32.7 million in savings to those members.

This is according to two special reports released today by the Nevada Credit Union League for the counties of Clark and Lincoln (click to view individually).

The economic impact of both locally-headquartered and non-local credit unions serving members across this region in 2016 also contributed to the industry’s total statewide impact across Nevada, which was $803-million.

As they pump financial benefits back to members through offering better interest rates on loans and deposit accounts, as well as lower or no fees, these 26 credit unions were serving 333,270 members across Southern Nevada (two counties) through a mixture of online and mobile banking channels, as well as a network of 114 branches that members can visit in person. (This does not include the “shared branching” network, which makes even more branches available)

The reports were commissioned by the League and independently completed and published by ECONorthwest, an economic research and consulting firm in Portland, OR. The study looked at balance sheet, regulatory “call report,” and operational data to come to its conclusions. ECONorthwest completed an independent analysis of credit unions surveyed and used a “multiplier-effect” model to extrapolate its economic conclusions.

Locally-Headquartered Trends
In a separate local quarterly-trends report for Southern Nevada (two counties), 8 credit unions headquartered in this combined region collectively reached a level not seen since 2001 in membership (225,000 members); money lent-out reached a level not seen since 2004 ($1.65 billion); and deposits reached a level not seen since 2009 ($2.7 billion). These statewide trends in first-mortgages, second-mortgages, HELOCs, business loans, new and used auto loans, credit cards, and other consumer loans give a snapshot of how local consumers are currently spending their money.

“Credit unions’ combined ripple effect in the broader economy cannot be ignored as their financially cooperative, not-for-profit model reinvests local dollars back into local economies,” said Diana Dykstra, president and CEO of the League, which is based in Ontario, CA. “These reports reaffirm credit unions' efforts to empower their members by helping them make wise financial decisions and thrive.”

Both the economic-impact report and local quarterly-trends report comes at a time when local policymakers engage in a renewed focus on the economic health of individuals. Household wealth and socio-economic mobility are increasingly seen as being tied to opportunities in financial education, an area many credit unions consider their strength.

“Research shows that up to half of wealth inequality may be caused by differences in financial literacy,” states a January 2017 Education, Income and Wealth article published by the Federal Reserve. “As a result, people are more likely to use costly home loan mortgage products, pay higher transaction costs and fees, and use high-cost borrowing options.”

Contacts
For questions or to speak with a local credit union, contact Matt Wrye, media relations manager for the Nevada Credit Union League (909-212-6043). For commentary on the local economy, contact Dwight Johnston, chief economist for the Nevada Credit Union League (909-215-3657)

The Nevada Credit Union League
The Nevada Credit Union League is based in Ontario, CA and is the state trade association for 17 credit unions headquartered in Nevada (as of fourth-quarter 2016). The League represents the interests of 344,000 credit union members across the state who are member-owners of their credit unions. Credit unions help consumers afford life and prosper!

 

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