Hunter United Credit Union's annual results, released yesterday, showed the locally-focused financial institution achieved a 50 per cent increase in new lending last financial year. Its CEO Tim Blomfield attributed this result to local borrowers re-financing to move away from major banks. The credit union is in a strong financial position, after seeing its pre-tax surplus bumped up by 8.2 per cent to A$422,000, total assets increased by nine per cent to just over $303 million and total lending assets up by 13.5 per cent, against deposit growth of 9.3 per cent. Blomfield said growth in new lending was achieved by "focusing on the traditional heartland of the Hunter", now accounting for 90 per cent of the credit union's members, up from 85 per cent a year ago.  He said 60 per cent of new customers were sourced via digital channels. "The results have been achieved whilst maintaining a conservative approach to lending, operating well within APRA guidelines," Blomfield said. "The results are particularly pleasing, and a credit to our local staff, considering the challenging economic environment (low inflation, low real wage growth and record low interest rates), sector wide regulatory lending restrictions and intense competition." He said in the last financial year, Hunter United launched a new website, online access to more accounts, and digitised all documents and forms. Increased digital marketing had proved effective and the use of social media supported, with 28 per cent of members responding to digital contact, as compared to an industry average of between three and five per cent. Looking ahead, Mr Blomfield said the Board would continue to look for merger opportunities that were in the best interests of its members and staff. "The financial services sector is transforming rapidly and smaller financial institutions must look for partnering opportunities to protect our customer-owned way of banking to benefit members," he said. The credit union, which has its origins in BHP steelworks, has 36 staff and six branches in the Hunter.