BAXTER, Minn. — Despite the corporate assessment, Mid Minnesota FCU continues to follow its strategic plan without a great deal of impact to the ALCO and its 2009 plans. However, it is making some temporary adjustments to employee compensation and benefits, as well as to travel and conference attendance guidelines.
Those moves were made to offset the effects of the corporate bailout, said Pam Finch, VP of administration and CFO. Finch added that the priority of a large operations efficiency project "increased on Jan. 28."
Especially in the current economy, the $200-million MMFCU has remained vigilant toward the impact of "unforeseen events" on its net worth, according to Finch, who does not rule out another hit from the NCUA. "We have reviewed the current costs of the corporate rescue, as well as if those costs double or triple," she said.
Over and above the expense of the corporate bailout, the potential for credit losses in the credit union's portfolio is MMFCU's biggest concern today, said Finch, who also serves as vice-chair of the CUNA CFO Council. "As the economy continues to soften, businesses continue to reduce their work force or cut hours, housing values continue to decline...our membership increasingly needs assistance in delinquency counseling. Working with the membership to protect their credit rating is our focus while minimizing the risk of charge offs."
