CUNA Mutual Reports $150M In 2012 Net Income
MADISON, Wis.-CUNA Mutual Group recorded $150 million of net income (GAAP) in 2012, compared to $83 million in 2011. The company credited the strong operating results to its lending, direct-to-consumer and asset accumulation products, which it said helped offset drought-related losses in its crop insurance business and weather-related losses in its auto and home businesses. "Solid investment performance also contributed heavily to higher net income in 2012," CUNA Mutual said.
In 2012 GAAP operating revenue grew by 3% in 2012, while total cash and investments grew to $11.1 billion in 2012, an increase of $1.2 billion over 2011.
During 2012 CUNA Mutual reported it spent $39 million to support CU leagues and industry efforts, and reinvested more than $40 million in a number of businesses, including consumer, asset management, crop insurance and technology to name a few. Benefits paid to credit unions in 2012 of $964 million were up slightly from 2011.
NCUA OK's Landmark CU To Acquire Savings Bank
ALEXANDRIA, Va.-The NCUA Board last week approved Landmark Credit Union, New Berlin, Wis., to acquire Hartford (Wis.) Savings Bank, a troubled, $190-million institution. The rare credit union-bank deal must still be approved by the FDIC. Landmark, with $2.1 billion in assets, is the third credit union to acquire a bank over the past 12 months, following Michigan's United FCU's acquisition of Griffith Savings Bank in Indiana, and Massachusetts' GFA FCU's deal to acquire Monadnock Savings Bank in New Hampshire. Hartford chairman and CEO Ken Braun had previously planned to retire in January 2013, but said he will stay on a community board of directors and maintain an office in Hartford. Tom Haley, the bank's president and COO, will join Landmark as its first regional president and chief risk officer.
Members Approve Conversion
BROCKTON, Mass.-Members of HarborOne CU approved the $1.9-billion credit union's conversion to bank, the biggest credit union charter switch ever. The credit union said 62% of the 22,433 members who voted favored the conversion to state-chartered mutual savings bank. The voters amounted to 17% of the credit union's 132,877 eligible voters.
The credit union, the second biggest in Massachusetts, must now have the vote certified by NCUA, which has 30 days to do so, and by the Massachusetts Department of Banking.
NCUA Webinar On Fair Lending
ALEXANDRIA, Va.-NCUA will host a free webinar, "Fair Lending Examination Program and Compliance Assistance," on April 4 at 1 p.m. EST. During the webinar, Gail Laster, director of NCUA's Office of Consumer Protection (OCP), and OCP staff will discuss NCUA's ongoing fair lending program.Participants may submit questions in advance at WebinarQuestions@ncua.gov. The subject line of the email should read, "Fair Lending Webinar."
For info: www.ncua.gov.
'Go Local' Certificates Debut
DURHAM, N.C.-Self-Help CU's Carolina Mountains CU subsidiary is offering a new Go Local CD that promises members the proceeds will be invested in local ventures, such as stores and companies, and for mortgages and auto loans. The new CDs are part of a western North Carolina Go Local campaign, through which Self-Help has helped fund such local businesses as Regent Park Early Childhood Development Center, West End Bakery, the French Broad Food Coop, and more. Self-Help has also developed CDs that invested exclusively in green businesses or in women and children through day-care centers.
Another Conviction In CU Failure
CLEVELAND-Another borrower in the massive St. Paul Croatian FCU fraud has been sentenced to prison after confessing to helping the main figure in the fraud, Balkans crime figure Koljo Nikolovski, siphon more than $6 million in credit union funds to banks in Macedonia and Albania. Marko Nikoli, 35, who is Nikolovski's nephew, was born in Macedonia but moved to the U.S. at the age of 7.
Nikoli is the 10th figure to be sent to prison in the fraud, including a half-dozen members of his family who agreed to take out loans they could not repay, then siphon the money to foreign bank accounts held by Nikolovski, purported leader of a Balkans crime syndicate.
In Other News
Fairwinds Backs Rhino Exhibit
ORLANDO, Fla.-The Central Florida Zoo & Botanical Gardens has a new addition: Jahi, a 3,000-pound Indian rhinoceros-thanks to Fairwinds CU. Local officials, zoo employees and guests gathered at the new Fairwinds Credit Union Indian Rhinoceros Exhibit to welcome the rhino with a ribbon-cutting ceremony.
FIS Finishes Purchase of mFoundry
JACKSONVILLE, Fla.-FIS said it has completed the acquisition of mobile banking pioneer mFoundry. FIS, which previously owned 22% of San Francisco-based mFoundry, acquired the remaining 78% for $120 million in cash. Founded in 2004 and serving more than 850 credit unions and banks, mFoundry's mobile banking solutions have become a leading platform for credit unions and banks.
Langley Implementing 'Symphony'
HAMPTON ROADS, Va.-Langley FCU has signed with Mortgage Cadence LLC to implement the company's Symphony platform to support the credit union's rapidly expanding mortgage program. In addition to the Symphony platform, Mortgage Cadence said its Consumer Portal will enable Langley FCU's members to originate their own loans and monitor progress throughout the mortgage cycle.
Numerica Plans 2 Branches
SPOKANE, Wash.-Numerica CU plans to open two new branches by the end of next year, including one this year in the two-story former First National Bank Building downtown. NCU said it has purchased property on Sprague Ave. it is considering for further development.
CU Solutions Adds Auto Club
LIVONIA, Mich.-The Michigan CU League's CU Solutions Group said it is introducing Credit Union Auto Club, a roadside assistance service, to its Invest In America discount program. The MCUL said CUs can earn marketing reimbursements when they offer Credit Union Auto Club to members, and members can receive a variety of roadside assistance benefits when they sign up.
