DAYTON, Ohio — Ohio credit unions are starting to reap real financial benefits from banking's woes and the market turmoil as CUs start getting new deposit business, CU officials reported Thursday.

“Look, we know this is coming at the expense of some banks amidst the gloom and doom, but we have a great story to tell,” said William Burke, president/CEO of the $157 million Day Air CU, Kettering, which in the last two weeks has witnessed a $500,000 deposit increase attributed to consumer concern about banks and deposit insurance.

Like CUs across the state and elsewhere, Day Air has joined in league-sponsored campaigns to allay public alarm over safety and soundness but media coverage of banking difficulties has been particularly pronounced over the weekend with a front page story in the Columbus Dispatch headlined, “Is National City Safe?”

Even before the article appeared and following the IndyMac Bank collapse in California, the $1.8 billion Kemba Financial was running a two page member letter on its Website from CEO Gerald Guy entitled “Is Your Money Safe at KEMBA?” The letter, like others elsewhere appearing in print and online stressed that CUs had no part in subprime loans and were now offering ways to help members get out of financial difficulty. Guy said he has received more than a dozen positive responses to his letter and also reported an individual moving an account from Wachovia Bank.

Meanwhile, the Pennsylvania Credit Union Association said Thursday an informal poll of its members found CUs “reported an increase in deposits.” In a statement, James McCormack, president/CEO said, “I'm very pleased with the results of this informal survey. It appears that the marketplace understands that credit unions are local financial institutions with a strong track record that consumers can trust.”