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CU System Archive

CU System

CU System briefs (02/10/2011)

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* HARRISBURG, Pa. (2/11/11)--A credit union in Leechburg, Pa., has reported suspicious inquiries by a person seeking membership. A person identifying himself as "Samir Shah" called Allegheny Metal FCU three times Monday, said the Pennsylvania Credit Union Association (PCUA) (Life is a Highway Feb. 10). The community-chartered credit union asked what his relationship is to its field of membership, and he indicated he works for Harvard Drug Group LLC, located in Michigan, and said it does business with three companies in the Leechburg area. Shah faxed a list of the businesses to the credit union, but when contacted, none had any knowledge of Shah or his company. On the third call, the credit union asked Shah why he was interested in joining the credit union. The reply: he liked the CD rates the credit union was offering. The credit union does not currently offer CDs … * EVANSVILLE, Ind. (2/11/11)--Dennis F. Burris, 55, of Evansville was indicted by a federal jury for attempting to deposit a $90,500 fraudulent U.S. Treasury check at Evansville Teachers CU in a newly opened account. If convicted, Burris faces a maximum of 25 years in prison and a $250,000 fine. An initial hearing before a U.S. magistrate judge was held Feb. 3 (courier-press.com and 14wfie.com … * MANHATTAN BEACH, Calif. (2/11/11)--Kinecta FCU has opened a Midwest Operations Center in Rosemont, Ill., as part of its expansion into wholesale mortgage lending division. The new 20,000 sq. ft. center will provide complete loan processing, underwriting and funding services as well as customer service for mortgage brokers in the Midwest. Kinecta, a $3.5 billion asset credit union based in Manhattan Beach, Calif., has operations in more than 17 states. It provides a range of fixed and adjustable home loans for purchase or refinance (PRNewswire Feb. 9) …

CUNA Mutuals crop insurance reaps 58 hike in net income

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MADISON, Wis. (2/11/11)--CUNA Mutual Group reported an increase of 58% in net income for 2010--primarily as a result of the company’s diversification into crop insurance. Net income grew to $87 million, compared with $51 million in 2009. Operating revenue on continuing operations rose 4.1%. Almost half of the growth was from crop insurance. The $15.4 billion assets company acquired Producers Ag Insurance Group of Amarillo, Texas, in 2009. CUNA Mutual said that business more than offset challenges other product lines faced due to poor economic conditions. Total operating revenue at the company inched up to $2.5 billion from $2.4 billion in 2009. Credit unions benefited from CUNA Mutual’s 2010 financial performance. The company paid $5 million more to leagues than in 2009--$35 million compared with $30 million. Overall, the company dedicated $39 million to credit union advocacy. “During these difficult economic times, CUNA Mutual has worked hard to keep premiums down, deliver greater value to credit unions and their members and still grow our company’s financial strength,” said CUNA Mutual President/CEO Jeff Post. “Our strong and diversified financial performance in 2010 enabled the company to provide record reimbursements and bonus dollars--nearly $40 million--to the credit union system.”

Montana CUs small loans increase 26 in 4Q

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HELENA, Mont. (2/11/11)—Montana Credit Unions for Community Development (MCUCD) reported an increase of more than 26% in small loans for the fourth quarter of 2010 from credit unions tracked by the organization. MCUCD attributed the growth to a statewide public awareness campaign it ran last year to educate Montana consumers about the availability of small loans at credit unions. The campaign was made possible by a National Credit Union Foundation (NCUF) grant though the REAL Solutions program. The fourth-quarter growth is part of a continuing trend. MCUCD reported that loans during the quarter increased by 26.7% from the third quarter, following a similar gain of 24.4% that quarter. The statewide awareness campaign ran in September and October. It included public-service announcements that were broadcast statewide on television and radio. The ads informed consumers that most credit unions make loans as small as $300. At the same time, credit unions, nonprofit partners and other interested groups distributed campaign materials developed by MCUCD to members and clients statewide.

Year-end net income at Corporate Central is 10.1M

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MUSKEGO, Wis. (2/11/11)--Corporate Central CU has posted its unaudited year-end December 2010 financial statement on its website. Net income, before paid-in-capital (PIC) dividends, for the month totaled $717,856, said the $1.8 billion asset, Muskego, Wis.-based corporate. That amount brings the total PIC for the year to $10.15 million, said the financial report. Income from interest totaled $1.28 million for December, bringing the total for 2010r to $18 million. The corporate's Net Economic Value (NEV), as of Dec. 31, is at $180.5 million or a NEV ratio of 10.06%, well above the regulatory minimum of 2%. Capital at the corporate as of Jan. 31 totaled $179.3 million, which brings its capital ratio to 10.07%, well above the federal regulatory capital ratio. Risk-based capital was 61.10%, according to the financial statement. Capital includes retained earnings totaling $22.48 million; PIC totaling $65.5 million; Tier 1 (Core) Capital at $87.9 million and membership capital at $91.37 million, said the corporate.

Ohio league meets with new superintendent of FIs

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COLUMBUS, Ohio (2/11/11)--Ohio Credit Union League officials met this week with the new superintendent of the Ohio Division of Financial Institutions (ODFI) to discuss the strength of Ohio’s credit unions and benefits of the state credit union charter. Paul Mercer, league president; Becky Hart, league communications director; and John Kozlowski, league general counsel, met with the new ODFI Superintendent Charles Dolezal and Deputy Superintendent of Credit Unions Mike Wettrich. Dolezal has 33 years of banking experience and in his new position oversees state-chartered credit unions (eLumination Newsletter Feb. 9). Also discussed were member business lending and the role credit unions can play in economic development; small-business lending initiatives; regulatory relief legislation for small businesses, financial and insurance services; and public funds, the league said. The ODFI officials were briefed on federal issues such as interchange, credit unions’ efforts to lift the member business lending cap to 27.5% of assets from 12.25%, and supplemental capital. Dolezal raised the topic of financial education and noted the importance of teaching financial basics at a young age. He was interested in the initiatives credit unions have underway with local schools, the league said.

CUs more popular than banks in Saskatchewan

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REGINA, Saskatchewan (2/11/11)--More residents in the Canadian province of Saskatchewan do business with credit unions than with any other type of financial institution, according to a survey released Wednesday. About 53% of Saskatchewan residents surveyed conduct business with a credit union, said a survey released by SaskCentral, a financial co-operative owned by Saskatchewan’s 61 credit unions (Saskatchewan News Network Feb. 9). Other survey results indicated:
* 67% said they deal with more than one financial institution; * 55% have switched financial institutions in the past; * 95% of those who conduct business with Saskatchewan credit unions are satisfied with the service they receive--the same percentage found in a similar survey conducted in 2006; and * 92% of those who deal with Saskatchewan banks were satisfied with service they received--up 1% from the 2006 survey.
Issues related to hours of operations, location, products provided and service charges are the key factors in determining where people go for financial services, the survey indicated.

Corporate One ends 2010 with 12M in net income

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COLUMBUS, Ohio (2/11/11)--Corporate One FCU reported its unaudited financials for December 2010, noting a turnaround to a net income of $12.1 million--exceeding its budget by $9.64 million--and a 0.36% return on assets at the end of the year. That compares with last year's $42.3 million loss generated by other-than-temporary-impairment (OTTI) charges in its securities portfolio and a -1.10% ROA year to date at the end of 2009. The global economic conditions corporates have faced the past three years continue to impact the Columbus, Ohio-based corporate's financial position. However, its "diversified investing, fee income from a strong suite of brokerage and correspondent services and conscientious spending have allowed us to weather these tough times," said Corporate One in its Unaudited Financial Statements posted on the corporate's website. As of Dec. 31, it marked a positive Reserves and Undivided Earnings (RUDE) position at $35.43 million. "Our members' capital shares and paid-in capital remain intact," said the financial statement. The corporate's assets at the end of 2010 totaled $2.88 billion, compared with nearly $3.3 billion at year-end 2009. Regulatory capital ratio was 5.39% at the end of 2010, just above the regulatory minimum required of 5%. Total regulatory capital, at $182.9 million, was a 9% or $15.2 million increase since Dec. 31, 2009, said the corporate. That includes the $35.43 million RUDE, membership capital shares (MCS) of $122.14 million and paid-in-capital (PIC) of $25.33 million. The increase in capital was attributed strong core earnings, gains on sales of securities, MCS from new members and increased capital from existing members. Total capital was reduced in November when the National Credit Union Administration redeemed about $900,000 in PIC and MCS related to a liquidated credit union and by $7.6 million in OTTI charges on securities. Its unrealized loss on securities is $166.4 million compared with the year before, which totaled $255,7 million.

Three pairs of California CUs up for mergers says DFI

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SACRAMENTO, Calif. (2/11/11)--Three California credit unions are slated to pair up with other credit unions in mergers, with two of the mergers approved and one pending approval, according to the California Department of Financial Institutions (DFI). The mergers were reported in DFI’s Monthly Bulletin for January, released on Wednesday. They include:
* Motion Picture FCU, Valley Village, to merge into Musicians’ Interguild CU, Hollywood, approved Jan. 7; * Onized Oakland (Calif.) FCU to merge into Allied Trades CU, Stockton, filed Jan. 10, approval pending; and * Star Energy CU, Bakersfield, to merge into Chevron FCU, Oakland, approved Jan. 7.