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Cornerstone CUs Reach $94.8 Billion in Assets, as of September 30
Monday, December 16, 2013 7:00 AM

In the past 12 months ending Sept. 30, 2013, assets in the area credit unions grew by almost 5.6 percent, as the institutions in Arkansas, Oklahoma and Texas added over $5 billion to their balance sheets. Although credit unions above $250 million in assets experienced most of that growth ($4.3 billion), mid-tier credit unions were also impressive with a 6.3 percent growth. Credit unions under $50 million in assets experienced a modest growth of 1.2 percent in the 12 months ending in September.

Loans demand was brisk, as Cornerstone credit unions experienced an 8.4 percent growth, reaching a portfolio of $59.6 billion, increasing their portfolio size over the past twelve months by $4.6 billion. Credit unions above $250 million added $3.81 billion to their loan portfolios while credit unions from $50 million to $250 million added $785.2 million and those under $50 million in assets added $12.3 million to their loan portfolios over the course of a year.

Over the first nine months of this year, the area credit unions have written 2.15 million new loans that circulated $24.5 billion into the economies of the three states. Arkansas credit unions have written new loans through September equaling $663 million, Oklahoma credit unions have written $3.3 billion in new loans, and credit unions in Texas wrote over $20.5 billion in new loans.

Deposits have grown well year over year ending in September, with funds on deposit growing 5.74 percent and reaching $82.3 billion. Overall, the increase amounted to an additional $4.5 billion on deposit in the area credit unions. Members in Texas added $3.8 billion while Oklahoma members added $649 million and Arkansas members added $20 million.

Additions to capital were not as brisk as the rapid rise in assets brought on by loan growth, so the current capital to asset ratio settled in at 10.36, twelve basis points lower than the 10.48 capital to asset ratio of September 2012. However, considering that any credit union with a ratio above 7.0 is extremely well capitalized, credit unions in the three states are very strong and very well managed. On average, credit unions under $50 million in assets have capital to asset ratios of 13.45, while the mid-tier credit unions maintain a 10.49 ratio. Credit unions above $250 million in assets average 10.06. The strongest credit unions are in Arkansas where credit unions average a capital to asset ratio exceeding 14.00.

Overhead expenses continue to grow in the financial sector and credit unions are no exception. Total overhead expenses grew by 5.97 percent, with significantly more growth (7.53 percent) in the credit unions above $250 million in assets. The good news to this is that the $2.3 billion credit unions paid in overhead expenses went to purchasing services and goods in their local economies.

As of Sept. 30, 2013 credit unions held $25.5 billion as cash and securities on the income statements. Overall, the first nine months of 2013 have been a very good year for the Cornerstone credit unions.