RALEIGH, N.C.—With rising deposit rates somewhere on the horizon, State Employees’ CU here commissioned KPMG to assess the strength and stability of its deposit funding structure.
The accounting and consulting firm’s report, released October 20, found SECU deposits to be long-lived and a stable, reliable source of funding, SECU stated in a release.
Utilizing SECU data from 2002 to 2014, KPMG’s study evaluated deposits in the categories of rate-reaction, maturity and growth and decay.
KPMG reported that “Generally, SECU deposit rates are only moderately sensitive to the changes in market interest rates.” SECU deposits are very stable and not prone to significant decline through all rate cycles and “with average lives that range from 4.2 years to 22.2 years over the entire timeframe.”
SECU’s money market share account—the most used SECU deposit account—has an average life span of 14.4 years to 17.8 years. “The long deposit lives reflect that deposits are a reliable and very stable source of funding for SECU,” KPMG stated.
SECU Chief Financial Officer Mike Lord said the $29-billion CU is “pleased that KPMG’s results parallel the findings of our internal studies.”
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