Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Matz notes CUs reduced loan losses operating expenses in 1Q 2010
ALEXANDRIA, Va. (8/13/10)—The general financial condition of credit unions nationwide remained “sound” during the first quarter of 2010, enabling credit unions to reduce their provisions for loan losses, lower their costs of funds, and cut operating expenses during that time period, National Credit Union Administration (NCUA) Chairman Debbie Matz said in a recent letter to federally insured credit unions. The letter noted that a 29 basis point reduction in provisions for loan losses led to an increase in earnings of the same amount during the quarter. Matz also noted that for the first time in five years, operating expenses were lower than credit unions' net interest margin. "Federally insured credit unions reported improved earnings performance and overall declining loan delinquency," Matz pointed out. However, Matz said that the NCUA is closely monitoring credit and interest rate risks faced by credit unions, adding that credit unions are specifically facing increasing real estate and business loan delinquencies as economic uncertainties persist. "The NCUA expects credit unions to implement plans to mitigate these risks,” Matz said. “Proactive sructuring and proper control over loan concentrations and share products will be fundamental to the future viability of credit unions,” she added. “While some short-term numbers are moving in the right direction,” Matz said that “credit unions still have a long way to go before overcoming all the effects of the economic downturn,” adding that the NCUA will work with credit unions “to take proactive steps to protect the safety and soundness of the credit union industry.” For the NCUA letter, use the resource link.
Other Resources

RSS





print
News Now LiveWire
#creditunions celebrate #EarthDay2015 by being green aware with e-statements, hosting shred events, planting trees
14 hours ago
From @WSJ: 33% of companies say it took them more than 1 yr to discover a data breach. http://t.co/a0MxV68X6t http://t.co/lkglx6WvKs
18 hours ago
.@CAMCouncil taps into @MICreditUnions' career, tech training resources http://t.co/sotnfCUgIo
19 hours ago
#Inflation ticks up in March, still relatively flat #NewsNow #Market http://t.co/PyAvwdkJ4M
19 hours ago
#NewsNow Ill. league groups elect board, exec officers http://t.co/KAG8MtbGsv
20 hours ago