Callahan and Associates report that in 2013, credit unions built upon the momentum they have gained since the recession ended. Loan growth is outpacing share growth, and consumer loans are becoming the focal point of the loan portfolio as the mortgage market cools.
Credit unions in Kansas posted solid financial performance, exceeding some national trends. One example is that Kansas credit unions posted annual outstanding loan growth of 9.0%, higher than the 7.9% national average in 2013.
In Kansas credit unions, auto loans and first mortgages grew at the fastest pace at 11.0% and 9.2%, respectively. Credit card loans also posted a strong annual growth of 8.4%.
The average member relationship (the outstanding combined loan and share balances per member, excluding business loans) increased, up 4.3% annually to $12,694 at the end of 2013.
Net interest margin at Kansas credit unions remained high in 2013. The net interest margin of 3.23% is significantly higher than the national average of 2.81%.
Total income at Kansas credit unions was up 6 basis points over 2012 results. An increase in non-interest income led to the growth. Credit unions nationwide reported a 1.6% annual decline in total income in 2013.
Kansas credit unions’ delinquency rate was 0.93% as of year-end 2013. This is lower than that of local banks as well as banks and credit unions nationwide.
The national gross domestic product increased 2.4% in the fourth quarter, versus 0.1% growth in the fourth quarter of 2012.
Unemployment in Kansas dropped from December 2012 levels. Kansas’ unemployment rate decreased 70 basis points to 4.9%.
In 2013, loan originations increased 3.6% annually to top $2.0 billion at Kansas credit unions. Consumer loan originations increased 8.5% over the past twelve months to $1.5 billion at year-end.
Credit unions in Kansas added a net gain of nearly 14,000 members over the past year, an annual growth rate of 2.2%.