Report: Loans, deposits are up at Kansas credit unions
09/09/2010 12:03 AM
09/09/2010 12:03 AM
Officials of the state's credit union regulator used words such as positive, encouraging and surprised Wednesday to describe the figures they reported in the Kansas Department of Credit Unions' Second Quarter 2010 Call Report Statistics.
The report, released Wednesday, showed that Kansas chartered credit unions as a whole increased loans and deposits and grew membership.
It also showed a rise in delinquencies.
"What was real positive this quarter was loan growth," said Mike Baugh, KDCU's financial examiner administrator.
The report said that total loans were $2.62 billion at the end of the three-month period on June 30. That was up from $2.54 billion in the first quarter 2010, and $2.45 billion in second quarter 2009.
"That was encouraging to see," Baugh said. "When you see all the other economic news out there ... it's been real positive to see this bounce back with loan volume."
Total assets for Kansas credit unions in the quarter were $3.89 billion, slightly higher than $3.86 billion in the first quarter and up more than $1 million from the second quarter 2009.
Total credit union membership was 560,246, a 3 percent increase from the first quarter and a 5 percent increase from a year ago.
"I'm not sure we know" why membership increased that much, said John Smith, KDCU administrator. "We need to examine that a little closer to see if it continues."
Smith and Baugh said an increase in delinquencies — from $31.9 million in second quarter 2009 to $35.7 million in this year's second quarter — was not alarming.
"I think the delinquency growth is really in line with the loan growth," Baugh said. "The delinquency numbers are really pretty reasonable given some of the difficulties certain sectors of the economy are having."
In an e-mail to credit unions earlier Wednesday, Smith praised credit union executives and board members.
"Board and management of Kansas chartered credit unions are to be complimented for their management in these economic times," Smith wrote in the e-mail.