Higher Rates Boost U.S.Central

Register now

LANEXA, Kan. - (11/01/05) -- U.S. Central CU reported Monday thatthe higher interest-rate environment helped push earnings on its$36 billion investment portfolio 63% higher for the third quarter,compared to the same period last year. That enabled U.S. Central toboost the payout to its corporate members by 67% for the quarter,before dividends on member capital share accounts. The corporates'corporate said it doubled the payout on MCS for the third quarterto $11.4 million, compared to $5.4 million for the same quarterlast year. For the first three quarters U.S. Central earned 68%more in interest and dividends on its investments, enabling it topay 74% more to its members, compared to the first nine months lastyear. Combined dividends on MCS and paid-in-capital was $39.5million for the first three quarters, more than double the $18.8million paid out for the same period last year. The average rateson MCS and PICs for the first three quarters was 3.27% and 4.03%,respectively, up from 1.46% and 2.24%, for the first three quarterslast year.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER