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No one disputes that a faltering economy has been a major contributor to thousands of CU balance sheets showing flat income or even losing money, but some observers also see the problem as being one of NCUA's own making-at least in part.

Credit unions are riding a crest of improving asset quality, and the resulting decline in loan loss reserves is helping to produce record net income for 2012, another sign of the improving economy.

JAY, Maine – Otis FCU gave back $325,000 in interest refunds and bonus dividends to its 10,000 members through its Return to Member campaign.

SAN BERNARDINO, Calif. – NCUA on Friday reported Arrowhead Central CU, a one-time $1.1-billion credit union taken under conservatorship in June 2010, continues to rebound, earning net income of almost $7.3 million for the fourth quarter and $25.5 million for all of 2012.

LAS VEGAS – Ailing Silver State Schools CU reported it broke into the black for the fourth quarter to the tune of $961,000, helping cut losses for the full year to just $670,000, down from loss of $8.4 million in 2011.

OGDEN, Utah – Goldenwest FCU reported a record year in 2012 for net income, loans and membership.

BETHPAGE, N.Y. – Bethpage FCU, New York’s largest credit union, reported a 38% increase in net income for 2012, to $57 million, as its assets topped $5 billion for the first time.

RICHARDSON, Texas -- NCUA said this morning that Texans CU, the one-time $2.2 billion credit union it has run under conservatorship since April 2011, broke into the black for 2012 to the tune of $24.2 million.

ALEXANDRIA, Va. – Credit unions are riding a crest of improving asset quality and the attendant fall in loan loss reserves to produce record net income for 2012, another sign of the improving economy.

SALEM, Ore. – The tax threat has already emerged for Oregon credit unions as a bill that would apply the state’s excise tax to some credit unions was introduced in the state legislature last week.

WABASH, Ind.. – Beacon CU paid members a loyalty dividend of more than $806,588 on Dec. 31.

ARVADA, Colo. – Partner Colorado CU paid its members a special dividend of $700,000.

ST. LOUIS – Anheuser-Busch Employees’ Credit Union and its American Eagle CU division paid its first-ever special dividend for members yesterday, returning almost $1.2 million to 69,000 members.

CLEVELAND – Ohio’s First Class CU declared both a loan interest rebate and a bonus dividend for the sixth consecutive year.

For the seventh month in a row, credit union business loan approval rates were down in December, according to the Biz2Credit Small Business Lending Index, while big banks saw a 13% increase in business loan approvals.

Looking back at 2012, there's a key differentiator between those CUs that made money and those that didn't: expense management.

Expense management is often a key factor in why small credit unions continue to struggle.

As credit unions enter 2013, they are faced with some sobering facts: A small percentage of institutions continue to drive most of the industry's growth, thousands of credit unions' earnings remain flat or in the red, and many analysts are forecasting the situation is not going to be getting better anytime soon.

BROOMFIELD, Colo. – Community Financial CU will distribute $300,000 to its members as part of its fifth annual bonus dividend.

HARRISBURG, Penn. – Pennsylvania State Employees CU said it will pay members a $10 million cash reward based on their relationship with the credit union, the credit union giant’s first member bonus since the financial crisis.