Kansas credit unions saw expansion in their loan balances in 2011, according to a inform expelled this week by the Kansas Credit Union Association and attention consulting definite Callahan Associates.
The report, formed on a collection of information from 101 Kansas credit unions is to fourth entertain of 2011, mentioned complete loans were $3.13 billion, a 5.88 percent enlarge from the fourth entertain of 2010. Kansas’ expansion exceeded the national rate of 1.14 percent in the same period.
Driving the expansion in Kansas credit unions’ loan portfolios were actual estate and vehicle loans. Real estate loan balances grew 9.48 percent to $968 million, and vehicle loans increased 5.93 percent to $1.77 billion, the inform said.
Among Kansas vehicle loans, the expansion was disdainful to used vehicle sales, the inform said. Bob Mayes, clamp boss of associate and vital services is to KCUA, mentioned credit unions are typically strongest in used automobile sales because they can offer aggressive rates.
It is more tough to vie on new vehicle loans, though, since automakers’ financing units that offer loans with more aggressive terms, such as 0 percent for 72 months.
“They lend towards to squeeze more of the new automobile loans,” Mayes said.
Credit unions’ business loan originations fell 14.7 percent in the state year over year, but excellent balances increased 3.2 percent in the period, the inform said.
While loan balances grew in 2011, the rate of delinquencies — inclusive for actual estate, credit card and other consumer loans — changed descend to 0.96 percent from 1.13 percent in 2010. During that period, credit association delinquencies nationally moreover fell, to 1.61 percent.
According to the report, Kansas credit unions also:
Added 14,638 members in 2011, a 2.4 percent enlarge from 2010.
Increased net income 14.65 percent to $35.9 million.
Lowered their ability for loan losses by 9.9 percent, to $20.5 million.