Thanks To Investments, CUNA Moves Into Black
CUNA reported a broad increase in net income to $1.4 million for 2004, based on unprojected gains in the association's investment portfolio for the fourth quarter.
In his annual report to the CUNA Board during last week's Government Affairs Conference, Allan McMorris, the board's treasurer and president of Oakland County CU, said CUNA's investments earned $756,000 in the fourth quarter, compared to a budget projection of $172,500. Later, he said the boom in earnings was due to the fourth quarter's rise in the equities markets, where much of the group's portfolio is invested.
For the year, CUNA reported a $157,000 net operating margin, less than the $287,000 the group had projected.
Still, the investment gains helped create a $1.3-million non-operating net, producing a net gain of more than $1.4 million for CUNA & Affiliates, according to McMorris. "It's been a very good year financially," he told the board. "We definitely have good news."
Last year's $1.4 million gain is more than triple the $450,000 in net income reported for 2003. CUNA reported net losses the two years prior to that, including red ink of almost $2 million for 2002.
Last year's results also include net income of $702,000 for CUNA Strategic Services Inc., the product and services subsidiary for CUNA. CUNA owns 51% of CSSI, known for many years as CUNA Service Group (CSG), and the remaining 49% is owned by CUNA's state league affiliates.
Total revenues for the year were $46.1 million, while total expenses were $44.7 million.
McMorris said if trends continue CUNA could have as much as $2 million in net income for fiscal 2005.