Kansas-chartered credit unions continued to see gains in the first quarter of the year, according to a new report from their regulator.
The Kansas Department of Credit Unions said in its First Quarter 2010 Call Report Statistics that credit union assets totaled more than $3.8 billion in the quarter, a 7 percent gain from the same quarter a year ago.
Total loans increased 7 percent in the same period to $2.5 billion and total members rose 4.5 percent to more than 543,000.
A more encouraging statistic was a quarter of a percent decline in delinquencies to 1.32 percent. That snapped a string of increases in delinquencies in three consecutive quarters.
"That's awfully good," Dick Yadon, KDCU's financial examiner administrator, said Friday. "Some of that could be because (bad loans were) charged off."
John Smith, KDCU administrator, said the overall report was encouraging.
"I think this looks positive," Smith said. "We have a few credit unions — probably more than a few — that were not profitable at the end of the year. In the aggregate, the industry is performing pretty good."
Smith would not identify the unprofitable credit unions but said they were unprofitable because they had to contribute extra capital to replenish the National Credit Union Share Insurance Fund, which is the credit union version of the Federal Deposit Insurance Corp.' s deposit insurance fund for banks.
"It shrunk their assets on both sides of the balance sheet," Yadon said.
Yadon said Kansas chartered credit unions are performing better as a whole than credit unions nationally. The report said Kansas credit unions' annualized return on average assets — a key measure of profitability — was 0.60 percent in the quarter compared to 0.45 percent for all federally insured credit unions. Delinquencies were also higher in the quarter — 1.76 percent — for federally insured credit unions.