Corporate credit unions

WASHINGTON - The significant losses being reported by some banks and investment firms as a result of deep problems in the mortgage markets are not being realized on the balance sheets of corporate credit unions, according to the association that represents those CUs.

SAN DIMAS, Calif. - After a review by auditors, WesCorp has restated its earnings for 2005, made adjustments to its 2006 earnings, and revised its hedge accounting practices for 2007. The result of the restatement, according to the $33-billion WesCorp and auditor KPMG, LLP, is an increase in income and retained earnings of $16.1 million over the period 2005 to September 2007, with 2005 now showing a negative adjustment of $22.9 million, but 2006 and 2007 (through Sept. 30) showing positive increases to net income of $16.9 million and $22.1 million.

WARRENVILLE, Ill. - Members United Corporate Federal Credit Union has established Members Health Network, LLC with the goal of joining technology and services that would make credit unions real competitors in the world of Health Savings Accounts and health banking.

ST. LOUIS–Missouri Corporate Credit Union (MCCU) has declared a bonus dividend of $100,000 to be paid to its member credit unions at the end of fiscal year 2007.

TALLAHASSE, Fla. - In response to member credit unions asking for investment advice and management help, Southeast Corporate Credit Union has launched a CUSO called Accolade Investment Advisory LLC.

Given today's volatile rate environment and the potential for greater interest-rate risk associated with growth in real-estate loans, it's likely your credit union's asset/liability management (ALM) planning processes will be a focus of your examiners. While on the surface, such a focus may seem stressful and burdensome, it's actually beneficial, as good ALM practices are critical to successful business decisions.

ATLANTA - VSoft Corp announced that Constitution Corporate Federal Credit Union (Constitution), a New England-based cooperative wholesale financial institution with assets of $2 billion, has successfully processed incoming image files from Bank of America using its Check 21 software and interface.

WARRENVILLE, Ill. - Corporate credit unions are on alert after the Federal Reserve's 50-basis-point rate cut had some observers interpreting the Fed's move as a signal it is concerned the credit-market crunch will slow economic activity well into 2008.

SAN DIMAS, Calif. - WesCorp FCU said credit ratings service agency, Standard & Poor's (S&P), affirmed its long-term credit ratings (AA-/Stable/A-1+) and gave the corporate credit union a "stable" outlook.

WARRENVILLE, Ill. - Members United Corporate FCU has launched a new, wholly-owned subsidiary, Members Health Network, LLC, which will help facilitate the introduction of Health Savings Accounts at credit unions.

SAN DIMAS, Calif. - The stock market jolted up following the Fed's decision to cut rates by 50 basis points, but at least one industry could see a longer-term benefit from the move: credit unions.

GREENSBORO, N.C. - As is the case with several other corporate CUs, First Carolina Corporate Credit Union has seen a rise of nearly 54% in term and structured certificates over the past year after an extended period of low liquidity.

MIDDLETOWN, Penn. - Natural-person credit unions appear to agree with Wall Street that the Fed will not be making any changes to the Federal Funds rate this year and as a result have been not only pouring deposits into corporate CUs but moving out of overnights and into longer-term investments.

COLUMBUS, Ohio - If conversions to bank charters, a seemingly endless parade of mergers and even the first "hostile takeover" attempt by one credit union over another have shaken faith in the cooperative nature of the credit union movement, the corporate credit union network offers a preview of how cooperation can survive a shakeup in the landscape.

SANTA ROSA, Calif.–Redwood CU and First Napa FCU have completed their merger, with RCU as the surviving institution serving 135,000 members and assets exceeding $1.5 billion. “We are pleased to welcome the Members of First Napa Federal Credit Union to our membership, and look forward to the opportunity to offer expanded financial services to these new Members, as well as to the entire Napa community,” said RCU’s CEO Brett Martinez. All former FNFCU employees were retained on staff of the merged institution.

Solutions For Every Scenario

Credit unions are generally overcapitalized and need to leverage their capital to grow and gain market share, according to one expert.

Having served as the linchpin for the bond market for the last 20 years, the Nonfarm Payroll report released last month was a shocker, according to Dwight Johnston, VP of economic research at Wescorp.

Business and technology must achieve harmony in an organization, according to CUNA Mutual's Rick Roy, senior vie president, Customer Operations and Chief Information Officer Tom Gosnell, who addressed an audience of more than 100 senior insurance executives and chief information officers from across the country here for the Insurance & Technology's 8th Annual Executive Summit.

First Carolina Corporate Credit Union and VACORP Federal Credit Union co-sponsored the first annual Payment Systems Conference that sought to provide CU industry payment experts with timely updates and new technology.