Navy Fed Speeds Towards $40B
VIENNA, Va.-Navy FCU had another successful three months in the second quarter, reporting net income of $100 million-its best quarter ever-and asset growth of 3%, pushing the world's largest credit union to $39.9 billion.
The huge net helped Navy Fed erase a $166.9 million loss for the first quarter - caused solely by a $217.1-million NCUSIF stabilization charge, which was whittled to $50.7 million after NCUA changed the stabilization program. As a result, Navy Fed reported net income of $100.7 million for mid-year.
The credit union giant also reported that deposits, which surged almost 11% in the first quarter, kept flooding in during the second quarter - $750 million in new deposits, almost 3% - during the period. In the first half of the year Navy Fed has seen $3.4 billion in new deposits, an increase of almost 14%.
Bad Luck Continues At Nevada CUs
LAS VEGAS-Nevada's credit unions continue to report big losses for the second quarter, as the state's real estate crisis persists.
Nevada FCU, the state's second-biggest CU, reported a $14.6-million operating loss for the second quarter. Combined with a $5-million first quarter loss and a $972,218 NCUSIF stabilization charge, the $804-million credit union reported a $20.5-million mid-year loss. Ensign FCU reported a $4.6-million second quarter loss and an $8.4-million loss for mid-year (not including any NCUSIF stabilization charge); Community FCU had a $2.5-million second quarter loss and a $3.1-million mid-year loss (including $1.2 million for NCUSIF) and Clearstar Financial FCU had a $1.2-million loss for the quarter and a $2.9-million loss for the first six months (including a $405,530 NCUSIF charge).
NCUA Rules On Abandoned Prop.
ALEXANDRIA, Va.-NCUA said a credit union can meet the requirements of its fixed asset rule if it lists an abandoned property for sale with a real estate broker.
"This will generally be sufficient to meet the regulatory requirement, assuming the other means include using a commercial listing service," according to an NCUA legal opinion letter.
The rule states if the property has been abandoned for four years, a federal credit union must publicly advertise it. "Our view is listing the property with a real estate agent, which we assume means the property will be included in a commercial listing service, and posting a 'for sale' sign in front of the property generally should be sufficient to satisfy the regulatory requirement," said NCUA. The rule requires FCUs to make diligent efforts to dispose of and seek fair market value for abandoned property, said the agency, adding the rule requires the sale of abandoned property within five years unless NCUA provides written approval.
Empower Acquires Troubled Telco
SYRACUSE, N.Y.-Fast-growing Empower FCU said NCUA has approved its acquisition of Telco FCU, an undercapitalized $23-million CU based in nearby Elmira.
The deal came as the FDIC was announcing it had seized four more banks, making a total of 57 for the year, more than double last year's 25 failures. NCUA has sought to merge failed CUs instead of liquidating them, so it has recorded five failures so far in 2009.
Telco, which has offices in Elmira and Big Flats, reported a $2.3 million operating loss for 2008 and a $212,000 loss for the first quarter, cutting net worth to under 3%. Empower, which had grown to over $750 million, reported a strong $5.3 million operating net for 2008 and a $1.9 million operating net for the first quarter of 2009. Empower has more than doubled in size over the past two years through mergers with Power FCU and, more recently, NestEgg FCU, to become one of the dominant CUs in central New York.
