RALEIGH, N.C. and WICHITA, Kan. (12/10/12)--Credit unions in Kansas and North Carolina reported robust growth last week.
Loans, assets and profitability were improved for the third quarter compared with a year ago for Kansas credit unions, according to according to the Kansas Department of Credit Unions' Third Quarter 2012 Call Report Statistics (Wichita Eagle Dec. 5).
Combined assets of the state's 79 credit unions increased 8.6% from a year ago to $4.3 billion.
Loans for the three-month period ending Sept. 30 rose 6.7% to $2.8 billion, compared with the same quarter a year ago, the report said.
Profitability also increased for Kansas credit unions, to 0.9% return on average assets--a key measure of profitability--compared with 0.72% in the third quarter of 2011. Kansas credit unions' return on average assets also was more than the 0.86% for credit unions nationwide in the third quarter, according to data from the National Credit Union Administration (NCUA).
In North Carolina, credit union membership numbers surged in the third quarter (Triangle Business Journal Dec. 7).
Two examples cited by the Journal were State Employees' CU and Local Government FCU, both of Raleigh.
State Employees' CU, with assets of $25.3 billion, boosted membership by 5.2%, to 1.8 million, in the 12 months ending Sept. 30-- nearly double the national growth rate of 2.7% for the same time frame, according to the NCUA.
Local Government FCU increased its membership by 7.4%, once again outpacing the national rate and the statewide growth rate of 3.2%.
Credit Union National Association senior economist, Steve Rick, credited the growth to improving consumer confidence, an aversion to higher bank fees and an improving new-car loan market. Nationally, the volume of new-car lending rose by 7% for the year ending Sept. 30 after shrinking for the past four years.
New-car loans at Local Government FCU increased by 80% to total loans of $45 million, in the year ending Sept. 30.
Local Government FCU lowered its interest rate on new-car loans to 1.99% in June and plans to keep it there through January, said spokeswoman Erica Hinton.