First Service Credit Union posted huge gains in net income and loans in 2015, with a strong increase in total assets and solid member growth.
The Houston-based credit union, with 10 branches in the metropolitan area, reported $8 million in net income for 2015, a 43.7 percent increase over its 2014 total of $5.6 million. Total income was up 31 percent, from $30.6 million to $40.2 million.
The credit union’s assets grew by nearly 12 percent to $597.6 million, up from $533.7 million at the start of 2015.
First Service Credit Union also reported $444.1 million in net loans as of the end of 2015. That represents a 19.7 percent increase over the $371 million it held as of the end of 2014. In total, the credit union received 30,601 loan requests – about one-quarter of them submitted online.
The credit union also grew its membership during 2015 by 9.3 percent, ending the year with 57,104 members, compared with 52,232 members at the end of 2014. Deposit growth was up 12 percent.
“2015 was an excellent year for First Service Credit Union and our members,” said Dave Bleazard, president. “All the key indicators were very strong, particularly our loan growth, income, and net income. We are making great progress toward our growth goal.”
Bleazard added, “Clearly, we are offering the types of loan products that our members are looking for. This level of loan growth, at a rate more than double our membership growth, shows that members are turning to us as their first choice when they need auto, home, or other loans.”
In 2015, First Service Credit Union opened a new branch, at 23665 Katy Freeway in Katy, and negotiated land purchases for further expansion this year. The credit union also launched its Discovery Youth Accounts, an innovative new banking program aimed at children from birth to age 18, with increasing levels of account features as the children grow and become more financially responsible.
Other highlights included the introduction of chip-enabled debit and credit cards for members, promising greater security and reduced risk of card fraud. First Service was one of the first financial institutions to offer instant issue chip-enabled cards. The credit union also paid a year-end patronage dividend, giving back to members a portion of the credit union’s net income, based on how many financial products each individual used in 2015.
At several points during 2015, First Service Credit Union was offering the highest rates in the entire country on its certificates of deposit. Those rates are still among the highest nationwide.
First Service Credit Union has set a goal of becoming an $800 million credit union in 2018, and Bleazard said the asset growth in 2015 was right on target for the steady progress needed to achieve that objective.