CNBS Expanding to Keep Up With Growth

OVERLAND PARK, Kan. – CNBS runs a lean operation when it comes to brokerage firms, but rapid growth on the fee side of its business has caused it to add staff over the last year and it will now add office space. At this time last year it had 20 employees, but that number has risen to 24 with another position still to be filled. CNBS President/CEO Brian Hague said CNBS is taking the option on its lease for office space adjacent to its existing office. It will increase space from about 6,500 square feet to roughly 8,600. CNBS recently held a private placement offering that saw five natural person credit unions buy a stake in the company, as well as some of its existing corporate CU clients upping their ownership, in some cases doubling it. CNBS raised $1.7 million in the offering. It did redeem $2.5 million from 10 corporates tendering their shares. Though it redeemed more than it brought in, capital is higher now than it was in the beginning of the year when all the corporate owners were in place. “Our annualized return on equity year to date is 57%, so we continue to build capital at a very healthy clip,” said Hague, noting that its capital (currently at about $3 million) consistently runs 10 to 20 times what’s required by regulation.