Debit Program Propels
Profits 33% At MasterCard
PURCHASE, N.Y.-MasterCard last week reported continued growth in its debit program helped push second quarter profits ahead 33% to $608 million. The cards giant said a 22% increase in debit transactions processed over the MasterCard system helped increase second quarter revenues by 22% to $1.7 billion. The MasterCard report came a week after Visa said its continued push into debit helped fuel a 40% rise in quarterly profits. MasterCard said the purchase volume of its debit cards rose by 19% in the second quarter and 22% worldwide. In comparison, credit card activity in the U.S. rose only 6% and by 14% worldwide.
CU To Share Strategies For
Cost Cuts, Improving Service
WEST PALM BEACH, Fla.-How did one credit union improve service, cut its costs and automate its processes? Credit Union Journal will highlight how Affinity Plus FCU did just that in a free, one hour webinar to be held Aug. 23, at 11 a.m. ET. Keith Malbrue, COO at Affinity Plus, will lead the discussion, which will highlight how APFCU employees are using barcodes and other technologies to locate member information, guard against fraud, and improve the credit unions on-boarding and off-boarding practices, in addition to other strategies. Readers can sign up at www.cujournal.com/subscribe/lead_webinar.html?product_id=1009480.
4 State Leagues Join To Boost CU Topline Revenues
FARMERS BRANCH, Texas-The California, Georgia, Ohio and Texas leagues last week announced the formation of a new company called CU Partner Link that they said will work on developng new topline revenues for credit unions. The four leagues said the goal is to focus on more than just cost-cutting at CUs. CU Partner Link is being chaired by Dick Ensweiler, president of the Texas league.
AEA FCU Shows Stronger Q2, But...
YUMA, Ariz.-NCUA reported last week that AEA FCU, which it has been operating under conservatorship since December 2010, reported stronger earnings during Q2. In particular, the agency said AEA FCU has posted year-to-date net income of $2.2 million on total assets of $229 million. Expenses were down 41% and provision for loan losses down 68% over the same period in 2010. During 2010 and Q1 of 2011, however, AEA FCU reported more than $31-million in charged-off loans, including a whopping $17 million in the first quarter of this year. As of March 30, it was also reporting nearly $40 million in delinquent loans.
Morris To Leave NAFCU
ARLINGTON, Va.-Jay Morris, who has served as NAFCU's SVP-marketing and communications for the past 11 years, said last week he will be leaving the association in the autumn. NAFCU said Morris plans to explore other career opportunities and perhaps begin his own PR consulting firm later this year.
Connecticut CU in Agreement
HARTFORD, Conn.-State regulators last week issued a supervisory agreement directing the $22-million Greater Norwalk Area CU to resolve a big loan delinquency problem and to build its dwindling capital. The consent order issued by the Department of Banking requires the one-time $30 million credit union to retain qualified management, create a supervisory committee, and take affirmative steps to address high loan delinquencies and charge-offs and to develop a net worth restoration plan. The CU lost $370,000 in 2010.
CUSG Provides $700K to BizKid$
LIVONIA, Mich.-CU Solutions Group (CUSG), through its Invest in America (IIA) program, last week pledged $700,000 toward the national underwriting of Biz Kid$, the CU-sponsored PBS program that teaches kids about money management and entrepreneurship. It is the second consecutive year CUSG has provided such a sponsorship. BizKid$ is managed by the National Credit Union Foundation.
CEO At Alamo Federal Resigns
SAN ANTONIO-Amid growing losses, Alamo FCU said its longtime CEO, Al Carreon, Jr., has departed and the $40-million credit union is searching for a new CEO. AFCU, working out of offices that are a scale replica of the Alamo, lost $783,000 last year and lost $222,000 for the first six months of 2011. Continewity LLC, Dallas, has been engaged to help oversee a turnaround.