WASHINGTON – CUNA, which plunged deep into the red for two years as its investments cratered, is expected to announce today that it returned to the black in 2009 due to the return of its investments.
The leading credit union trade association is expected to announce at today’s board meeting at the group’s annual Government Affairs Conference that net income for 2009 was as much as $7 million, including net operating income of around $800,000. Last year’s operating net is similar to the one reported in 2008.
That follows losses of $5.2 million in 2007 and $8 million in 2008, caused by a plunge in the association’s investment portfolio, which funds retiree benefits and other expenses. The losses cut CUNA’s reserves, the equivalent of a credit union’s net worth, from $15.8 million at year-end 2006 to just $2.7 million at year-end 2008.
The losses prompted extreme belt-tightening at CUNA, which included the elimination of bonuses and raises for top executives for two years in a row, a freeze on company contributions to 401(k) retirement plans for all employees last year and layoffs of as many as 30 employees.
