WASHINGTON-CUNA announced last week it had a profitable 2009 - net income of $6.8 million - after two years of losses wiping out more than $13 million of reserves.
Last year's net was related to stock market gains, just as the losses of the prior two years, of $5.9 million for 2007 and $8 million for 2008, were caused by losses in the value of equities held by CUNA to fund its employee pension plans, among other things.
The unaudited financial report for 2009 was presented yesterday to the CUNA Board during the first day of CUNA's annual Government Affairs Conference, where about 3,500 credit union managers and volunteers are gathered.
The 2009 results, Pat Wesenberg, treasurer of the CUNA board and president of Central City CU in Stevens Point, Wis. said during yesterday board meeting, "marks a significant change from 2008."
Last year's financials include a net operating gain of $1.4 million and non-operating gains, mostly on stock holdings, of $5.4 million. That compares to an operating loss of $900,000 for 2008 and a non-operating loss of $8.9 million for 2008.
At the same time, revenues declined by 8% from 2008 to $53.7 million. But CUNA trimmed its expenses by the same 8% to $52.3 million.
The net gains allowed CUNA to rebuild its equity, or reserves, from just $2.6 million to $9.4 million at year-end.
