State’s credit unions see strong third quarter
12/07/2011 5:00 AM
12/07/2011 5:54 AM
The Kansas credit union industry saw gains in loans and assets and drops in delinquencies in the third quarter.
That’s according to a report released this week from the Kansas Department of Credit Unions, the regulator of 80 state-chartered credit unions.
The report said that the aggregate total for credit union assets was up 7.8 percent from a year ago to $4.28 billion.
In the same period, total loans increased 5.7 percent to $2.84 billion.
At the same time, credit unions’ delinquency ratio dropped from 1.36 percent in third quarter 2010 to 0.98 percent.
“That’s pretty significant” for a delinquency ratio to drop that much in a year’s time, Michael Baugh, KDCU’s financial examiner administrator, said Tuesday. “Anything below 1 percent in this economy is pretty significant.”
Baugh and John Smith, KDCU’s administrator, said two things contributed to the lower delinquency ratio: a decrease in the total amount of money in delinquency – from $36.7 million to $27.8 million – and an increase in loans. The increase in loans dilutes the delinquency total, Smith said.
Baugh said he thinks that credit unions also have been working hard to collect on overdue loans, which is reflected in a lower delinquency ratio.
The number of credit union members increased 3.7 percent to 573,026.
“Generally speaking, (Kansas) credit unions are doing well,” Smith said.
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