Mid-Year Numbers Showing Losses Seen As 'Warning'
Michigan Credit Union League CEO Dave Adams is describing mid-year call report data for
The data from the Office a Financial Services (OFIS) showed a decline in earnings and capital and higher loan
Adams said that considering the high rate of deposit inflow and the poor stock market, the numbers are not alarming.
"Tough economic times are being felt by Michigan credit unions," Adams said. "They're certainly getting higher-
Adams said he appreciates that OFIS is not idly standing by as the numbers are reported. Roger Little, deputy
"The stresses evident in the June 2002 statistics highlight the need for application of sound management practices in
The report showed that 38 of Michigan's 282 state-chartered CUs net losses at mid-year, double the number of 2001,
"There is a deterioration in net earnings," Adams said. "And, it is true that the ROA on an annualized basis is .78%,
But, he added, many credit unions have been enjoying ROAs of greater than 1%. The OFIS report also indicated that
"As you're growing, it's going to continue to put a strain on you. But credit unions are still doing very well," Adams
Adams said the end of the year will reveal the whole story. "It is possible to see a little bit more deposit growth the