Kansas Credit Unions End Third Quarter 2012 on Positive Note

Kansas credit unions ended third quarter 2012 very strong, posting higher than average growth rates and exceeding national trends in both loans and share draft balances.

The average member relationship (the outstanding combined loan and share balances per member, excluding member business loans), share draft balance and share draft penetration all grew in 2012.

The average member relationship rose to $12,100, a 5.5 percent increase, and share balance growth remains strong. Year over year, the total amount of shares deposited at Kansas credit unions stood at $4.4 billion, an increase of 8.5 percent, while the national average increased at a rate of 6.2 percent.

Share drafts are up $63.9 million, an annual increase of 10.2 percent. Share draft penetration for Kansas credit unions was 35.7 percent in September 2012, higher than any point in the past six years.

"These numbers could indicate more and more Kansans are choosing credit unions as their primary financial institution,” said Janeen Smalley, VP of Member and Strategic Services at the Kansas Credit Union Association.

Kansas credit unions are more highly capitalized than most FDIC insured institutions in 2012. As of September 30, Kansas credit unions reported an average capital ratio of 11.5 percent, better than national peers, and behind only Kansas savings banks. The earnings for Kansas credit unions remain solid.

Loan growth continues to be outstanding with Kansas credit unions posting annual loan growth of 6.5 basis points, while nationally loans grew 4.2 basis points year over year. Charge-offs remain low at 56 basis points, and delinquency rates at 87 basis points, much less than the national rates of 74 and 118 basis points respectively.

Download Third Quarter Performance Summary (pdf)