Hawaii State Federal Credit Union in Honolulu reported lower first-quarter earnings as it paid out more in interest for deposits.
The $1.6 billion-asset credit union said on Wednesday that it earned about $2.9 million, down 37.7% from the same quarter a year earlier.
“The decrease in net income comes as no surprise and is a direct reflection of our efforts to provide more value to our members in everyday savings,” Andrew Rosen, president and CEO of Hawaii State FCU, said in a press release. “Unlike traditional banks where profits are returned to shareholders in the form of dividends, Hawaii State FCU is committed to returning profits to our members in the form of better loan rates and by paying more in deposit interest.”
Rosen said in the press release that the credit union had spent over $1 million this year in deposit interest rates for members. At the end of 2018, Hawaii State FCU introduced a new, high-yield savings account product, "relationship max," which pays 1.50% APY.
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The credit union said it continued its trend of membership growth dating back to 2012, as it hit 108,520 members on Oahu and Maui. That figure is up 6.3% year over year.
Loan balances hit $986.3 million, up 13.8% from the previous year. Hawaii State FCU ended the first quarter of 2018 with $867.1 million in loans.
The credit union said it plans to open its 10th branch this summer at the Salt Lake Shopping Center in Honolulu. The new branch, along with the recent reopening of the Kahului Branch at the Pu‘unene Shopping Center on Maui, which doubled in size in a renovation, are prompted by its membership growth, the institution said.
Membership in Hawaii State FCU is open to all active and retired employees of the state of Hawaii, city and county of Honolulu and Maui County, plus members and employees of more than 300 local organizations and businesses.
