Jefferson Financial Federal Credit Union, Metairie, La., on Monday said it had “record” financial results for calendar year 2017 – the credit union’s earnings increased 147.1%, to $8.6 million in 2017 from $3.5 million in 2016.
As previously reported in Credit Union Journal, Jefferson Financial FCU, which has a low-income designation, was the beneficiary of one of the largest secondary capital requests ever approved by the National Credit Union Administration: $12 million.
According to a statement from Jefferson Financial FCU, the influx of secondary capital “paved the way for three mergers that produced 2017’s year-over-year record numbers.” The credit union said its net worth grew 75%, to $84.9 million from $48.6 million. Assets increased 82%, to $890 million from $490 million. Membership increased 46%, from 43,175 members to more than 63,191 as of Dec. 31, 2017.
The credit union said its efficiency ratio improved from 80% to 72%.
“The injection of secondary capital was the driver of these results. We could not have achieved this level of financial success without it,” said Jefferson Financial CEO Mark Rosa.
CU Capital Market Solutions, an Atlanta-based CUSO, assisted the credit union with its secondary capital plan and non-member funding.
“Now we can capitalize on significant opportunities in our market,” Rosa continued. “Access to secondary capital and non-member funding sources provided by CMS means credit unions have new opportunities to serve more members.”
CU Capital Market Solutions currently has 18 credit unions in 14 states seeking secondary capital and that number keeps growing, according CMS President and Chief Strategist Robert Colvin.
“Secondary capital unlocks the potential in the strategic plans of well-managed, well-capitalized low-income credit unions across the country,” Colvin said. “The performance of LICUs such as Jefferson Financial, as they assisted low- and moderate-income families during the financial crisis, set them apart from other financial institutions in their market. Access to secondary capital and non-member funding sources now allows them to expand this business model so they can serve even more members.”
“Our membership is up almost 50 percent,” Jefferson Financial FCU’s Rosa said, “and our plan directly benefits our members.”
Jefferson Financial Federal Credit Union serves more than 63,000 members with more than a dozen locations across Southern Louisiana and Alabama. Originally chartered in 1966, the first JFFCU branch was located on the second floor of a floral shop and existed primarily to serve employees of the Jefferson Parish Public School System. Fifty years later, not only continues to serve the school system, it also serves dozens of business and community partners throughout its service regions.