Credit where credit’s due

The landscape in which credit unions operate has changed greatly in recent years, and Virginia Credit Union is negotiating this difficult new terrain with caution and confidence. Micheál McDermott, CEO of VCU explains that their “key priority to thrive and survive” is to lend money.

“The way the credit union operates is, we take in money from our members, we provide a safe and secure place for that money to be held.

To work on giving a return for that money we have to lend out prudently, and we have to put our money in investments to get a return.

Over the last five years the investment returns have dropped considerably, because interest rates have come down.

“So we’re very reliant as a credit union on lending - 75% of our income here comes from lending money, rather than investment returns. It leaves us in a strong position that almost 50% of our assets are leant out, which is really where you want to be as a credit union.

“Our level of bad debts are extremely low because we underwrite and lend very prudently. Really and truly the main reason for that is we are putting members’ money at risk when we lend money out, and we’re very conscious of that.”

It’s proven a successful strategy.

“For at least the last 10 years we’ve been posting a profit year on year.

Our loan book is growing every year, our membership is growing every year, and all things would suggest we are going to be here as a stand alone credit union for the foreseeable future.”

There is great uptake of Virginia CU’s range of loan products.

“Our most popular products are car loans, student loans over a certain period of the year at a very competitive rate. We also have Christmas loans, we have home renovation loans, and we have a lower home renovation loan rate for people who don’t have an existing mortgage - that’s one of our most attractive products that you can lend up to €80,000 over a 10 year period to those members.”

Micheál volunteers that the credit union is conscious of meeting its environmental, social and governance responsibilities.

“We are contributing to that side of things by way of installing solar panels over the next 12 months.”

Highlights of this year

Virginia CU is there to serve the community, and they also strive to support the community.

“We had a number of national award winners in our art competition in 2025, and this year our local art prize giving will take place on November 27 for the local winners who will go on to regional adjudication.

“We also run the very successful schools quiz that takes place in February every year.”

They also provide sponsorship to the thriving Cavan Eagles Basketball Club, and this year’s senior championship winners, Lurgan Ladies.

“Also, the ‘Alternative All Blacks’ - the little group of kids in Virginia Rugby Club – we provide jerseys for them whenever they require them.”

Virginia CU is proud to host a long-running annual coffee morning, organised by an ex-board member, Stephanie Bell.

“We pick four different charities every year and the fact that we spread it around works well - everyone’s getting mileage out of it.”