Higher Rates Boost U.S. CentralPayout
LENEXA, Kan. - (04/13/06) -- U.S. Central FCU reported that thehigher-rate environment in 2005 allowed it to significantly raisedividends paid out to its corporate members. The corporates'corporate reported a 64% surge, or $465 million, in interest anddividend income for 2005, compared to 2004. This allowed U.S.Central to pay out $434 million more in interest and dividends toits members. For 2005, U.S. Central said it paid an average rate of3.25% on member share accounts (up from 1.35% in 2004); 3.21% onmember certificates (up from 2.05%); 3.53% for member capitalshares (up from 1.66%); and 4.35% for paid-in-capital (up from2.48%). The corporates' corporate, which converted to a federalcharter in October, also reported a major increase in loan demandfrom its members to an average of $1.1 billion a day, from $590million in 2004, which peaked at $3.7 billion in late August. U.S.Central also reported a continued expansion of its CU InvestmentSolutions operations, with on-site agents now at 20 corporates, upfrom 14 the year before. U.S. Central ended 2005 with assets of$36.6 billion, almost the same as the year before.