FHLB Chicago Reports Big Loss For The First Quarter
CHICAGO–The troubled Federal Home Loan Bank of Chicago reported a first quarter loss of $78 million as it continues to struggle through the mortgage crisis.
The report follows last month’s decision by the Chicago Bank to exit the secondary mortgage market program it created–known as Mortgage Partnership Finance–after losses from the program reduced its capital levels and killed a proposed merger with the FHLB of Dallas.
The first quarter red ink was caused by a $33-million loss on held-to-maturity securities and a $62-million loss on derivatives and hedging investments. In addition, net interest income was down to $31 million for the first quarter, from $73 million for the first quarter last year.
The Chicago Bank tapped its COO Matthew Feldman to be its CEO. Feldman has been the bank’s acting president since April 11, after his predecessor, Mike Thomas, decided to leave following the decision of the FHLB Chicago and FHLB Dallas to abandon their plan to merge.
The Chicago Bank has 830 members, including 75 CUs.
New Hampshire Passes Payday Loan Cap
CONCORD, N.H.–The New Hampshire House last week approved a 36% maximum rate on payday and title loans, sending the bill to Gov. Lynch, who said he will sign it into law.
New Hampshire repealed an interest cap on small loans in 1999 after lenders complained to lawmakers that the credit card industry had moved into the market.
Payday loan companies fought the bill, saying it will force them out of the state.
CU Buys 2 Branches from Wachovia
LAKELAND, Fla.–MidFlorida FCU has acquired two in-town branches from Wachovia, which recently closed them both. The acquisition gives the $840-million credit union a total of 16 branches. Terms of the deal were not disclosed.
CU Seeks OK To Close Two Branches
CHICOPEE, Mass.–Aldenville CU has asked state regulators for permission to close two underperforming branches. State law requires approval of the Division of Banks to open or close a branch. Officials of the $85 million credit union say the two branches, one in the Hampden County Correctional Center, are underperforming.
The jail branch opened six years ago for correctional center employees and is open two days a week using tellers from the CU’s main and Burnett Road branches. An ATM will remain at the jail.
TMG Financial Buys CU Cards
DES MOINES, Iowa–TMG Financial Services, an affiliate of the Iowa CU League, said it has acquired four more credit card portfolios from CUs. They are: Citizens Community CU, Members Community CU, Dubuque Teachers CU and U-Haul FCU. The portfolios consist of a total of $8.1 million in receivables.
Suspect Confesses To 2 Robberies
VANCOUVER, Wash.–A man suspected of twice robbing a People Community CU branch, including a holdup last Monday, has turned himself in to police.
Investigators interviewed Lucas Harding Smith, 26, and arrested him on suspicion of robbing the branch on April 28 and May 5. After the second robbery, witnesses told investigators there were indicators it was the same robber who struck the branch last month.
OpSS Releases 2 White Papers
MADISON, Wis.–Credit unions can learn how to use business services to build member relations and about Net Promoter Scores in two new white papers from the CUNA Operations, Sales, and Service (OpSS) Council. “Taking Care of Business Members: The Case for Business Services as a Relationship-Building Strategy” illustrates how credit unions can grow with their business members and establish a two-way conduit to their personal and business accounts. The second white paper, titled "Net Promoter Score in Action," describes the score's framework and how it is being used at three credit unions.
