U.S. Central Cuts Net To MaintainPayout

LENEXA, Kan. - (11/03/04) -- U.S. Central CU said its thirdquarter net income dropped 38% to $10.9 million, due to a 15% risein interest and dividends paid to members over last year's thirdquarter. The increased payout helped the corporates' corporatemaintain the same dividend rate on both its member capital shares(1.46%) and paid-in-capital (2.25%) through the first threequarters of the year, compared to last year's first nine months.Fee income for the third quarter was up 9% to $4.9 million; whileoperating expenses were almost flat at $14 million. For the firstthree quarters, net income was down 28% to $37.4 million, whilemember dividends and interest paid to members was down 2% to $438.8million. Operating expenses for the first three quarters was up 13%to $43.3 million, due to a $1.9 million increase in salaries; a$1.7 million increase in data processing costs; and a $2.2 millionincrease in outside consulting expenses. U.S. Central ended thethird quarter with $36.8 billion in assets, down from $37.9 billionat the end of last year's third quarter. Third quarter highlightsincluded a $155 million offering of collateralized mortgageobligations made up of credit union jumbo mortgages through U.S.Central's Charlie Mac subsidiary.