Net income down at Hawaii State FCU as membership, loans rise
Hawaii State Federal Credit Union saw strong growth across a variety of key sectors during the first three quarters of the year, the Honolulu-based institution reported Thursday.
Loan balances at the end of Q3 stood at roughly $1 billion, an 11.3% increase from the end of the third quarter of 2018, while membership was up by 6.7%, with 7,000 new members joining during the last 12 months.
Other key results include:
- An 8.3% increase in deposits for a total of $1.5 billion
- An 8.7% uptick in total assets, reaching $1.7 billion, making Hawaii State FCU the largest credit union in the Aloha State.
- A 10% drop in year-to-date net income, from $9.3 million at the end of Q3 2018 to $8.4 million on Sept. 30, 2019.
“We continue to focus on returning profits to our members by providing the best rates and lowest fees possible, which is one of the reasons our net income dipped compared to last year,” President and CEO Andrew Rosen said, adding that the credit union’s high-yield savings account has helped it outpace deposits at other FIs in the state.
Some credit unions have also seen year-over-year declines in net income because those figures spiked last year following the National Credit Union Administration's equity distribution in the wake of the National Credit Union Share Insurance Fund and Temporary Corporate Stabilization Fund merger.
Hawaii State's strong member growth was also aided by the addition of a branch in the Salt Lake shopping center, which Rosen said accounted for 21% of all new memberships during the first two months the branch was open.
“This validates our efforts to open branches in communities where our members reside and we look forward to expanding our presence in West Oahu,” he said.