JEFFERSON CITY, Mo. – Missouri credit unions had a tough year in 2007 with a 48% decline in earnings, caused mainly by a 43% rise in net operating expenses, the state credit union regulator reported.
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The main culprit was a rise in average cost of funds to 2.79% of assets, from 2.39% at year-end 2006, according to a new report issued by the Division of CUs.
Loans increased just under 2% (1.8%) for the year, while deposits grew by just over 2% (2.1%).
As a result, profitability was halved to just 0.33% return-on-assets for the year, from 0.64% for 2006.
The number of credit unions in Missouri declined by 5% last year to 139, from 147, while membership also declined by 0.3% for the year.
