January 6, 2011
By Aaron Pugh
Loans and shares increased at cooperatives across the sunflower state during the third quarter, with membership possessing an average share and loan balance of $6,259 and $9,395 respectively. Although Kansas credit unions are slightly behind their peers in terms of credit card and share draft penetration per member as of this summer, they lead the way in a notoriously tough auto market with more than 25% auto loan penetration, or one auto loan per every four of their 600,000 statewide members.
According to Callahan's Peer-to-Peer Software, annualized loan growth through September centered on used autos, which comprises nearly a half of Kansas credit unions' loan portfolio. This increased balances 12.1% from the year before.
Kansas’s 5.7% annual balance sheet growth included improvements in volume for all areas of the portfolio excluding first mortgages. This noteworthy accomplishment is further complemented by improving asset quality that surpassed many national trends. Kansas holds a 1.33% delinquency ratio versus a national average of 1.74%.
Comprising slightly more than one-fifth of loan portfolio composition overall, first mortgages outstanding grew 3.2% at Kansas credit unions. Although originations fell, firsts sold to the secondary market in the first nine months of 2010 totaled $178.7 million year-to-date.
Shares also increases 9.5% annually in 3Q, with share drafts and money market drafts leading the way in both dollar and percentage increases. Share certificates, comprising 34.1% of the state’s share portfolio, also grew balances by 4.3% annually.
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