Compared to first quarter last year, BECU posted a $677 million gain in assets that can be attributed to the 24.8 percent increase in loan balances. BECU, based out of Seattle, Washington, is one of the largest credit unions in the U.S. with $5.4 billion in assets at the end of first quarter 2005.
Real estate loans accounted for more than 60 percent of the loan portfolio increasing to $2.5 billion, a 19.5 percent gain from March 2004. In the first quarter of 2005 alone, open-end adjustable rate loans made up the largest component of real estate loans with $94.4 million.
Our growth is attributed to better loan rates and a good brand image that translates into a better relationship value to members, said Joe Brancucci, vice president of lending. BECU has also been active in promoting an aggressive indirect lending strategy leading to high auto loan volume increasing 51.0 percent in the last year.
Share growth continued to be above average as BECU reported a 13.8 increase compared to 8.4 percent for First Look credit unions. This growth was led by the tremendous 12- month jump in money market shares.
On the earnings side, net income increased to $15.9 million a $7.1 million increase from March 2004. BECU led a big effort in reducing expenses, said Brancucci, and, therefore, created more value for their members as reflected by the higher dividends paid to its members.
The below chart features some more highlights for BECU:
| 1 st Quarter 2005 Results | 1 st Q 2004 to 1 st Q 2005 Growth |
Quarterly Growth |
|
| Assets | $5.4B | 14.48% | 3.90% |
| Loans | $4.1B | 24.79% | 2.58% |
| Shares | $4.7B | 13.80% | 4.59% |
| Members | 401,783 | 12.24% | 2.37% |
| Return on Assets | 1.21% | 46bps | 20bps |
| Operating Expenses/ Total Assets | 2.69% | – 73bps | – 25bps |
| Delinquency | 0.25% | – 9bps | – 3bps |
| Source: Callahan & Associates, Inc., March 31, 2005 |
For a complete look at BECU’s financial statement, click here.
BECU is one of 455 credit unions of all asset sizes that participate in Callahan & Associates’ First Look program. Through participating, they gain access to first quarter data of other participants weeks before data is officially released by theNCUA. To participate, submit your call report in *.XML format to 5300@callahan.com