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CUs in Cornerstone Region See Growth in Deposits, Members, Loans & Assets
Wednesday, March 12, 2014 6:50 AM

Year-end data is in and preliminary numbers look favorable for credit unions in the Cornerstone Credit Union League region.

According to Rick Grady, Cornerstone’s vice president of research, deposits in the area credit unions grew almost 6.1 percent to $82.6 billion. By comparison, deposits in banks grew nearly 7.4 percent to $781.2 billion, of which $370.4 billion is with banks that are headquartered outside of Texas. In-state banks grew deposits 6.1 percent, while banks headquartered outside of Texas grew deposits by 8.9 percent.)

More than 370,000 individuals joined credit unions in the region in 2013, bringing the membership to 9.56 million members, and adding more than $4.3 billion to their depository accounts.

Credit unions in the region manage 2,046 branches with average funds on deposit of $40.4 million. Banks in the same region have 9,088 branches with average deposits of $86.0 million. Out-of-state banks average $112.3 million in deposits per branch.

Credit unions, Grady says, maintained a deposit market share of 9.6 percent in 2013.

Loan demand from credit unions grew 9.7 percent in 2013, reaching $61.2 billion. Credit unions held a 9.6 percent market share in loans from financial institutions in the area. Banks, Grady points out, held a 90.4 percent market share in lending, amounting to $549.1 billion. Growth reached 5.3 percent in 2013.

Credit unions wrote nearly $22 million in loans every business day in 2013, adding $5.7 billion to their portfolio by year-end.

More than $6.9 billion in real estate loans were written in 2013, with the average loan of $108,000. Credit unions in the three-state area wrote 246 real estate loans every business day - in total 1,242 more in real estate loans than all of 2012. The total real estate portfolio is now in the range of $19.2 billion.

Overall, the delinquency rate on total loans is down four basis points and averages 1.38 percent. The median delinquency rate is 0.83 percent, indicating that a significant number (around 99 percent) of credit union members are current with their loan payments.

Members’ assets in Cornerstone credit unions grew more than $5.1 billion in 2013, reaching $95.3 billion at year-end. Although the average credit union is now $150.6 million, the median is still in the $23 million range.

Overall, members’ equity in the region’s credit unions grew over $571.6 million in 2013.

Interest income for 2013 remained relatively flat when compared to 2012 while noninterest income grew $91.2 million. However, noninterest expense to deliver those services expanded by more than $189.5 million, offsetting any gain. Noninterest income to total revenue remained in the 22 percent range.

In an economic environment of slow job growth, credit union employment rose 4.7 percent in 2013. Credit unions across the region directly employ over 26,700 people.

“With an economic upturn in 2014 credit unions in the region are heading into a good growth year,” observes Grady.