Our credit union serves a large land area with two distinct economic industries. The majority is located smack dab in the West Texas oil field and the other has the federal government to thank for their jobs (Border Patrol, DEA, etc). The oil industry is considered to be in a boom at present. As a result deposit growth has out paced loan growth.
We've being seeing what we call the "toy" phase for a while now. When we have sustained good times, members tend to start buying "toys" more and more. Whether it be boats, ATVs, or motorcycles these are what they are wanting, and these are the things we start getting back when the inevitable bust hits.
In the area near the Texas/Mexico border there always seems to be uncertainty. You get as many different projections as different people you talk to. Salary cuts and/or lay offs are always top of mind. This group tends to be more conservative in borrowing and savings habits. (A lot of them actually read disclosures.)
2012 was a year of 24% growth for the credit union and 2013 looks to be shaping up the same. ROA has remained north of 100 bps through the last few years even with our loan mix dropping.
Devora Mitchell, CEO/President
WesTex Community Credit Union
$60M, Kermit, TX