in idaho, oregon, and washington - northwest credit union ......credit union members in idaho,...

$603 MILLIONIn direct member benefits

$7.8 BILLIONtotal economic impact

2018 ECONOMIC IMPACTS OF CREDIT UNIONSin Idaho, Oregon, and Washington

ECONOMIC IMPACTS OF CREDIT UNIONS IN IDAHO, OREGON, AND WASHINGTON

The Northwest’s not-for-profit, member-driven cooperative credit unions created a $7.8 billion economic impact in 2018. ECONorthwest delivered an independent analysis that analyzed the gross economic impacts of credit unions in Idaho, Oregon, and Washington. The study measured jobs, economic output, and income supported by not-for-profit, member- driven cooperative credit unions in the regional economy. The study also measured the direct benefits that not-for-profit, cooperative credit unions are uniquely positioned to return to their members. The study found that in 2018, the value of benefits to the Pacific Northwest’s 7.3 million credit union members was $603 million, which, when spent in local communities supported a total gross economic output — buying power — of $1.3 billion.

ABOUT NORTHWEST CREDIT UNIONS:THE CREDIT UNION DIFFERENCEThe key difference between credit unions and other financial services providers is the not-for-profit, cooperative structure. Credit unions are owned and driven by the members who use their services. Unlike profit-driven financial institutions which pay stockholders, credit unions exist solely to meet their members’ financial needs, and thus are uniquely positioned to return direct benefits to those members. The benefits manifest in the form of better interest rates, lower fees, and other services that hard-working Americans need.

Early credit unions were formed during the Great Depression, when workers pooled their money to help their colleagues obtain credit. The Federal Credit Union Act was signed into law in 1934, to balance the nation’s credit structure, providing thrift through a cooperative model. That structure — and credit unions’ focus on a foundational “People Helping People” philosophy — remains intact today.

In the Pacific Northwest, almost 220 credit unions serve 7.3 million consumers — 55% of the population — and protect 42% of the overall market share (assets). In the United States there are nearly 5,600 credit unions providing comprehensive financial services to over 116 million member-owners, representing approximately 7.4 percent of the national market share (assets). The number of credit union members continues to grow over time, demonstrating the value that consumers place on local, cooperative, member-owned financial services providers.

ABOUT

ECONorthwest specializes in the application of economic and financial principles and methods to the evaluation of public policies and investments. Incorporated in 1974, ECONorthwest has completed more than 2,500 projects for public and private clients. ECONorthwest has a staff of approximately 50 people, including offices in Portland, Seattle, Eugene, and Boise.

ECONorthwest employs the full range of analytical tools for measuring economic impacts. We maintain regional macroeconomic models, in addition to standard and econometrically augmented input-output models.

To these tools, we apply a rigorous understanding of the economic context in which specific impacts occur.

This combination of robust modeling capacity and explanatory insight allows us to provide unparalleled quantitative analysis.

We have several decades of experience using the IMPLAN modeling software, conducting analysis of the zip code level through national-level models. Our expertise is widely recognized in the industry.

For more information, please contact Allison Tivnon, ECONorthwest Media Relations, at 503-200-5066.

DEFINING ECONOMIC IMPACTS

ECONorthwest surveyed Northwest not-for-profit, member- driven cooperative credit unions and obtained supplemental information to use in an economic input-output model. ECONorthwest received detailed information for almost 1,100 credit union branches. In addition to survey data, the National Credit Union Administration (NCUA) 4Q 2017* call report data and Credit Union National Association (CUNA) Project Zip Code Data were used in the calculation of the economic impacts.

To evaluate the economic impacts of credit unions, ECONorthwest used IMPLAN, an input-output model which enables the user to follow expenditures from a company as they flow through the economy.

The model measures credit union impacts (direct) and indirect (supply chain) and induced (consumer spending) impacts, then calculates economic contributions (output), employee compensation, and jobs.

CREDIT UNIONS’ UNIQUE ECONOMIC IMPACTThere is a key difference between this report and a standard economic impact analysis. In the credit unions’ unique not-for-profit cooperative, member-driven structure, credit unions return benefits directly back to their member consumers rather than delivering profits for investors. That direct member benefit creates another layer of economic impact. As cooperatives return benefits directly to members, these benefits support additional Main Street economic impacts.

Credit Unions are cooperative, not-for-profit, and member owned.

Credit Union Impacts represent the output, employment, or income change due to credit unions’ own use of goods and services.

Total Economic Impacts include credit union impacts as well as indirect and induced impacts. Indirect impacts are driven by direct expenditures, which initiate a chain of other impacts in the economy, as the firms that supply goods and services to credit unions must themselves purchase supply chain goods and services. Induced impacts are supported as a result of consumer expenditures by employees.

Direct Member Benefits are calculated by accounting for differences in not-for-profit credit union and for-profit bank pricing. The not-for-profit cooperative structure is designed to return benefits directly to the members it serves, while a for-profit-bank structure is designed to return benefits to shareholders. Credit union members enjoy lower account fees, higher interest rates on savings and checking accounts, and lower interest rates on loans.

Economic Contribution represents all sales and other operating income occurring in the study area (inclusive of supply-chain purchases and compensation of employees.)

KEY TERMINOLOGY

TOTAL IMPACTS

2018 Economic Impacts of Credit Unions in Idaho, Oregon, and Washington 3ECONorthwest2

CREDIT UNION ECONOMIC IMPACTS

Direct Member Benefits In 2018, the 7.3 million Northwest consumers received $603 million in direct member benefits from their not-for-profit cooperative credit unions. The result of spending the $603 million supported $1.3 billion in economic activity in the region.

Membership Growth The number of credit union members living in the three-state Pacific Northwest region has grown rapidly since 2016. In Oregon and Washington, membership grew by 14% since 2016 compared to 3.4% population growth. In Idaho, membership grew by 8% since 2017, compared to 2.3% population growth.

Economic Contribution Credit unions supported $7.8 billion in total gross economic activity, which includes supply chain spending, wages, and direct member benefit.

Jobs and Income Credit unions in Idaho, Oregon, and Washington provided more than 18,700 family wage jobs. Every credit union job supports one-and-a-half additional jobs in the Northwest economy (a jobs multiplier of 2.5).

CREDIT UNION ECONOMIC IMPACTS

*Data from CUNA 3Q 2018. No economic impacts were calculated based on use of the loans in the economy. For example, we did not calculate the impact of car loans on the new and used car indus-tries, nor the impact of mortgages on the real estate and construction industries. Loans broadly benefit the regional economy, but this study does not capture how loans benefit individual businesses throughout the economy.

CREDIT UNION IMPACTS TOTAL ECONOMIC IMPACTS

DIRECT MEMBER BENEFIT

$603 MILLIONbenefit to members

$3.1 BILLIONspending and compensation

$1.3 BILLIONtotal economic output supported

by direct member benefits

$7.8 BILLIONtotal spending & compensation

supported by credit union operations

would be the 241ST LARGEST METRO AREA measured by GDP in the U.S.; placing it between Medford, OR, and Idaho Falls, ID.

JOBS

18,700jobs

46,800total jobs supported by credit union operations

ECONOMIC CONTRIBUTION

Rural Lifeline In rural counties, about 312,000 residents are credit union members, which represents 33% of the rural population. While many out-of-state, for-profit financial services institutions have closed branches in rural communities, local credit unions remain committed to serving these populations, providing services such as agricultural, home, vehicle, and small business loans that area consumers need.

Loans In addition to the $7.8 billion that Northwest credit unions contributed to the regional economy, credit unions have currently provided 4.16 million loans outstanding to members, totaling $65.6 billion.* Credit unions’ lending to working-class Northwest consumers puts them in houses, helps them to start small businesses, and provides transportation to jobs, in addition to the spending supported through member-derived benefits.

COUNTIES WITH A CREDIT

UNION BRANCH LOCATION

34

31 34

$

$

CREDIT UNION MEMBERS

CREDIT UNION LOANS

HOME LOANSsupporting construction

workers, realtors ...

AUTO LOANSsupporting dealers,

mechanics ...

BUSINESS LOANSsupporting suppliers,

employees ...

LOCAL ECONOMY$7.8 BILLION


CREDIT UNION MEMBERS

In Idaho, Oregon, and Washington, 7.3 million consumers have made the choice to join a not-for-profit, member-driven cooperative credit union. Credit unions are located across the

Source: NWCUA member survey, CUNA, NCUA, and ECONorthwest calculations.Note: Dots are randomly placed within each county, representing 100 members each.*This potentially includes double counting of individuals who are members of more than one credit union. The number of credit unions represented are those that have members in Idaho, Oregon, Washington, not the number of credit unions headquartered.

Polk

Grays

HarborKittitas

Spokane

Whitman

Baker

Umatilla

Grant

Clackamas

Thurston

Deschutes

Asotin

GarfieldPacific

Ferry

Hood River

Pierce

Island

Cowlitz

Multnomah

Lane

Marion

Lake

Union

Benton

Whatcom

Klamath

Skagit

King

Jackson

MalheurCoos

Okanogan

Clallam

Kitsap

PendOreille

Clatsop

Linn

Mason

Tillamook

Douglas

Yamhill

Yakima

Wasco

Stevens

Snohomish

WallaWalla

Crook

Skamania

Harney

Josephine

Chelan

Curry

Wahkiakum

Morrow

Klickitat

SanJuan

Wheeler

Sherman

Columbia

Wallowa

GilliamAdams

Bannock

BlaineButte

Camas

Cassia

Clearwater

Franklin

Fremont

Idaho

Lewis

BearLake

Nez Perce

Owyhee

Shoshone

TwinFalls

Boise

Elmore

Power

Canyon

Custer

Caribou

Washington

LemhiValley

Benewah

Oneida

Bonneville

Boundary

Clark

Latah

Minidoka

Jefferson

Kootenai

Lincoln

Payette

Ada

Gem

Jerome

Teton

Bonner

Gooding

Bingham

Madison

100 MEMBERS

WASHINGTON4.3 Mmembers

58%of the population

550total branches

OREGON2.1 Mmembers


318total branches

IDAHO992,000

members


217total branches

entire Pacific Northwest, even in small, rural communities. The map below represents the credit union member presence across the Northwest.*

IDAHO VALUE OF MEMBER BENEFITS

CUNA “Membership Benefits Report,” Year-End 2018 Member benefits were calculated based on 2Q 2018 data from CUNA. The annual member benefit calculation was applied to the number of members living in each county during 4Q 2017.

$100direct member benefits

per member

$99 MILLIONtotal direct

member benefit

$206 MILLIONlocal spending supported

by member benefit

Adams$0.18

Bannock$14

Blaine$4

Butte$0.28

Camas$0.05

Cassia$2

Clearwater $1

Franklin

$1

Fremont$1

Idaho$2

Lewis$1

Bear Lake$0.46

Nez Perce$7

Owyhee $1

Shoshone$0.49

Twin Falls$7

Boise$1

Elmore$2

Power

$1

Canyon$22

Custer$0.46

Caribou

$1

Lemhi$1

Valley$1

Benewah $1

Oneida$0.24

Bonneville$15

Boundary

$1

Clark$0.1

Latah$3

Minidoka$1

Jefferson

$3

Kootenai$15

Lincoln$0.25

Payette$1

Ada$67

Gem$1

Jerome$1

Teton$0.43

Bonner$4

Gooding

$1

Bingham

$1

Madison$5

Washington$0.43

NUMBERS IN MILLIONS

Credit unions, as not-for-profit cooperatives, generate and return value directly to their member-owners. Credit union members receive benefits because of the cooperative, not- for-profit, member-driven structure, which produces lower fees, higher interest rates on savings and checking accounts, and lower interest rates on loans compared to for-profit bank customers. Each dot represents the relative proportion of the direct benefits that members in different counties realized annually from being a credit union member. From the direct benefits incurred, consumers will spend portions of that savings in the local economy, from which additional multiplier impacts further benefit the local economy. In Idaho, the direct member benefits of $99 million generate $206 million of spending in the state.


IDAHO ECONOMIC IMPACTS

Direct Member Benefits The $99 million in direct financial benefits that 992,000 Idaho members received last year from their cooperative credit unions supported $206 million in total economic impacts. The direct member benefits are calculated by accounting for differences in not- for-profit credit union and for-profit bank pricing. Because of the cooperative structure, credit union members enjoy such things as lower account fees, higher interest rates on savings and checking accounts, and lower interest rates on loans.

Jobs and Income Credit unions in Idaho provided 2,500 family wage jobs. Every credit union job supports 1.2 more jobs in the Idaho economy.

Economic Contribution This represents all sales and other operating income occurring in the study area (inclusive of supply chain purchases and compensation of employees). Idaho credit unions supported $779 million in total gross economic activity.

Loans Credit unions’ lending to working-class Idahoans puts them in houses, helps them start small businesses, and provides transportation to jobs. In 3Q 2018, there were 562,000 loans outstanding, totaling $8.1 billion.

Source: BLS QCEW, NWCUA member survey, CUNA, NCUA, and ECONorthwest calculations.

IDAHO CREDIT UNION JOB IMPACTS

Bannock1,375

Blaine32

Butte9

Cassia27

Clearwater26

Franklin11

Fremont13

Idaho70

Lewis39

Bear Lake8

NezPerce371

Owyhee2

Shoshone2

TwinFalls131

Boise7

Elmore55

Power9

Canyon369

Custer8

Caribou9

Washington1

Lemhi19

Valley2

Benewah15

Bonneville598

Boundary8

Latah48

Minidoka8

Jefferson25

Kootenai213

Payette25

Ada1,410

Gem10

Jerome11

Teton1

Bonner46

Gooding10

Bingham43

Madison190

Adams

Camas

Oneida

Clark

Lincoln

Credit Union Jobs by County

< 1

1 - 50

51 - 100

101 - 500

501 - 1,000

> 1,000



INCOME


$158 MILLIONincome to credit union employees

$290 MILLIONspending and compensation

$206 MILLIONtotal economic output supported


$299 MILLIONtotal income supported

by credit union operations

$779 MILLIONtotal spending & compensation supported


JOBS

2,500jobs

5,500total jobs supported



In addition to providing family wage jobs throughout Idaho, the jobs supported by credit union operations represent a meaningful share of the employment base. The map below displays the number of jobs by county that are associated with credit union operations (includes direct, plus indirect and induced jobs).

MULTIPLIER EFFEC TSSpending associated with operation of credit unions in the Northwest generates “multiplier” spending effects that benefit workers and business owners in other sectors of the local and state economies. Multiplier effects represent additional rounds of spending that are supported by credit union member benefits and credit union spending and wages. For example, in Idaho, the job multiplier is 2.2. This means that every direct employee at a credit union supports another 1.2 jobs for workers in other sectors of the regional economy.

< 1

1 - 50

51 - 100

101 - 500

501 - 1000

> 1,000

CREDIT UNION JOBSBY COUNTY


OREGON VALUE OF MEMBER BENEFITS

Credit unions, as not-for-profit cooperatives, generate and return value directly to their member-owners. Credit union members receive benefits because of the cooperative, not- for-profit, member-driven structure, which produces lower fees, higher interest rates on savings and checking accounts, and lower interest rates on loans compared to for-profit bank customers. Each dot represents the relative proportion of the

direct benefits that members in different counties realized annually from being a credit union member. From the direct benefits incurred, consumers will spend portions of that savings in the local economy, from which additional multiplier impacts further benefit the local economy. In Oregon, the direct member benefits of $152 million support $333 million of spending in the state.


OREGON ECONOMIC IMPACTS

Direct Member Benefits The $152 million in direct financial benefits that 2.05 million Oregon members received last year from their cooperative credit unions supported $333 million in total economic impacts. The direct member benefits are calculated by accounting for differences in not-for-profit credit union and for-profit bank pricing. Because of the cooperative structure, credit union members enjoy such things as lower account fees, higher interest rates on savings and checking accounts, and lower interest rates on loans.

Jobs and Income Credit unions in Oregon provided 5,100 family wage jobs. Every credit union job supports 1.4 additional jobs in the Northwest economy.

Economic Contribution This represents all sales and other operating income occurring in the study area (inclusive of supply chain purchases and compensation of employees). Oregon credit unions generated $1.8 billion in total gross economic activity.

Loans Credit unions’ lending to working-class Oregonians puts them in houses, helps them start small businesses, and provides transportation to jobs. In 3Q 2018, there were 1.1 million loans outstanding, totaling $17.1 billion.


per member


member benefit


by member benefit

Polk$2

Baker$0.43

Umatilla$4

Grant$0.37

Clackamas$26

Deschutes$11

Jefferson$0.45

HoodRiver

$1

Multnomah$56

Lane$53

Benton$9

Lake$0.22

Columbia$3

Union$0.39

Washington$24

Klamath$4

Jackson$15

Malheur$1

Coos$3

Clatsop$3

Linn$8Lincoln

$2

Tillamook$1

Douglas$5

Yamhill$3

Wasco$1

Crook$0.4

Harney$0.21

Josephine$4

Curry$2

Marion$17

MorrowSherman

Wallowa

Gilliam



INCOME



$757 MILLIONspending and compensation



$802 MILLIONtotal income supported


$1.8 BILLIONtotal spending & compensation supported


JOBS

5,100jobs

12,200total jobs supported



NUMBERS IN MILLIONS


WASHINGTON VALUE OF MEMBER BENEFITS

Credit unions, as not-for-profit cooperatives, generate and return value directly to their member-owners. Credit union members receive benefits because of the cooperative, not- for-profit, member-driven structure, which produces lower fees, higher interest rates on savings and checking accounts, and lower interest rates on loans compared to for-profit bank customers. Each dot represents the relative proportion of the

direct benefits that members in different counties realized annually from being a credit union member. From the direct benefits incurred, consumers will spend portions of that savings in the local economy, from which additional multiplier impacts further benefit the local economy. In Washington, the direct member benefits of $352 million support $787 million of spending in the state.


GraysHarbor

$3 Kittitas$1

Spokane$84

Whitman$2

Douglas$3

Thurston$32

Asotin$1

Pacific$1

Ferry$0.06

Pierce$58

Island$4

Cowlitz$18

Benton$20

Whatcom$22

Skagit$2

King$196

Clark$32

Okanogan$0.4

Clallam$0.07

Kitsap$25

Lincoln$0.24

Franklin$3

Mason$5

Lewis$3 Yakima

$20

Jefferson$1

Stevens$1

Snohomish$81

Walla

$2

Grant$2

Skamania$0.12

Chelan$2

Pend

$1Oreille

Walla

Garfield$0.03

Wahkiakum

Klickitat

SanJuan

Columbia

Adams

NUMBERS IN MILLIONS


per member


member benefit


by member benefit


OREGON CREDIT UNION JOB IMPACTS

In addition to providing family wage jobs throughout Oregon, the jobs supported by credit union operations represent a meaningful share of the employment base. The map below displays the number of jobs by county that are associated with credit union operations (includes direct, plus indirect and induced jobs).

MULTIPLIER EFFEC TSSpending associated with operation of credit unions in the Northwest generates “multiplier” spending effects that benefit workers and business owners in other sectors of the local and state economies. Multiplier effects represent

additional rounds of spending that are supported by credit union member benefits and credit union spending and wages. For example, in Oregon, the job multiplier is 2.4. This means that every direct employee at a credit union supports another 1.4 jobs for workers in other sectors of the regional economy.


< 1

1 - 50

51 - 100

101 - 500

501 - 1000

> 1,000

Morrow

Wheeler

ShermanWallowa

Gilliam

Polk56

Baker20

Umatilla142

Grant34

Clackamas978

Deschutes387

Jefferson9

HoodRiver

45

Multnomah2,280

Lane2,441

Benton431

Marion820

Lake9

Columbia259

Union24

Washington1,109

Klamath162

Jackson814

Malheur70

Coos162

Clatsop90

Linn309

Lincoln42

Tillamook44

Douglas170

Yamhill48

Wasco30

Crook17

Harney12

Josephine119

Curry38

CREDIT UNION JOBSBY COUNTY

< 1

1 - 50

51 - 100

101 - 500

501 - 1,000

> 1,000


GraysHarbor

140Kittitas

13

Spokane4,514

Whitman48

Douglas100

Thurston1,789

Asotin40

Garfield5

Pacific39

Ferry5

Pierce1,770

Island67

Cowlitz806

Benton752

Whatcom1,167

Skagit71

King6,454

Clark1,696

Okanogan17

Clallam8

Kitsap647

PendOreille

18

Lincoln13

Franklin115

Mason237

Lewis76 Yakima

801

Jefferson27

Stevens10Snohomish

3,195

WallaWalla

92

Grant78

Skamania4

Chelan50

Wahkiakum

Klickitat

SanJuan

Columbia

Adams


< 1

1 - 50

51 - 100

101 - 500

501 - 1000

> 1,000

WASHINGTON ECONOMIC IMPACTS

Direct Member Benefits The $352 million in direct financial benefits that 4.3 million Washington members received last year from their cooperative credit unions supported $787 million in total economic impacts. The direct member benefits are calculated by accounting for differences in not- for-profit credit union and for-profit bank pricing. Because of the cooperative structure, credit union members enjoy such things as lower account fees, higher interest rates on savings and checking accounts, and lower interest rates on loans.

Jobs and Income Credit unions in Washington provided 11,100 family wage jobs. Every credit union job supports 1.6 additional jobs in the Northwest economy.

Economic Contribution This represents all sales and other operating income occurring in the study area (inclusive of supply chain purchases and compensation of employees). Washington credit unions supported $5.1 billion in total gross economic activity.

Loans Credit unions’ lending to working-class Washingtonians puts them in houses, helps them start small businesses, and provides transportation to jobs. In 3Q 2018, there were 2.5 million loans outstanding, totaling $40.4 billion.

In addition to providing family wage jobs throughout Washington, the jobs supported by credit union operations represent a meaningful share of the employment base. The map below displays the number of jobs by county that are associated with credit union operations (includes direct, plus indirect and induced jobs).

MULTIPLIER EFFEC TSSpending associated with operation of credit unions in the Northwest generates “multiplier” spending effects that benefit workers and business owners in other sectors of the local and state economies. Multiplier effects represent additional rounds of spending that are supported by credit union member benefits and credit union spending and wages. For example, in Washington, the job multiplier is 2.6. This means that every direct employee at a credit union supports another 1.6 jobs for workers in other sectors of the regional economy.

WASHINGTON CREDIT UNION JOB IMPACTS




INCOME



$2.1 BILLIONspending and compensation



$1.8 BILLIONtotal income supported by

credit union operations

$5.1 BILLIONtotal spending & compensation supported


JOBS

11,100jobs

29,100total jobs supported by credit union operations


CREDIT UNION JOBS

BY COUNTY

< 1

1 - 50

51 - 100

101 - 500

501 - 1,000

> 1,000


OREGONKOIN Center

222 SW Columbia St., Suite 1600Portland, OR 97201

503-222-6060

OREGONThe Washburne Building

72 W Broadway, Suite 206Eugene, OR 97401

541-687-0051

WASHINGTONPark Place

1200 6th Avenue, Suite 615Seattle, WA 98101

206-823-3060

IDAHOEagles Center

223 North 6th Street, Suite 430Boise, ID 83702208-515-3353

www.ECONW.com

in idaho, oregon, and washington - northwest credit union ......credit union members in idaho,...

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