Kansas credit unions had a strong 2012. Through hard work and dedication to serving members, performance has well-exceeded national levels in several categories. Here are a few of the most notable accomplishments:
Growth – Total assets are up 7.84% over December 2011. This exceeds the national average of 6.23%. Most importantly, loans have grown 6.15% in Kansas compared to the national average of 4.54%. Kansas credit unions are deepening relationships with members, exploring new delivery channels and finding ways to reach borrowers in the communities they serve. In addition, Kansas credit unions have seen nice growth in shares (7.79%) led by an 18.73% increase in money market shares. This exceeds the 6.09% increase in share growth seen nationally.
Capital – Kansas credit unions continue to be strong financially with an average capital ratio of 11.0%. This also compares favorably to the national average of 10.4%. Revenues for 2012 grew 3.0% over 2011 and are beginning to return to levels not seen since 2009. Sales of mortgage loans on the secondary market have assisted in creating a 22.8% increase in non-interest income over 2011. This has helped hold up credit union bottom lines as loan yields continue to fall in this low interest rate environment.
Asset quality – Delinquency has remained fairly constant compared to 2011 standing at 0.94% at the end of 2012. This beats the national average by 22 basis points. Net charge-offs in Kansas for 2012 was 0.58%, down from 71 basis points at the end of 2011 and again beating the national average of 0.74%
The Kansas economy continues to outperform the national average. Unemployment stood at 5.5% at the end of 2012, evidence we are in the process of an economic recovery. Home sales and home values continue to rise as well. Looking forward into 2013, challenges will continue to present themselves. The economy is still in recovery and compliance burdens are heavy. Kansas credit unions are equipped to face these challenges and have proven they can be successful even in uncertain times.
For questions about the Kansas credit union performance report contact Tammy Wendland, (800) 362-2076, ext. 3023.