Credit unions

WALL STREET - Fitch Ratings put two more corporate CUs, Southwest Corporate FCU and Constitution State FCU, on its Negative Watch because of growing losses in the value of their mortgage backed securities portfolios.

MIDDLETOWN, Penn. - Mid-Atlantic Corporate FCU has created a new CUSO, Sollievo Group LLC, to provide retirement programs, insurance and benefits services to credit unions.

PLANO, Texas - As economic stimulus checks and tax refund checks hit mailboxes, the question credit unions should be asking themselves right now is, “is it time to reprice our savings accounts?”

DULUTH, Ga. — The good news: some credit unions have grown anywhere from 10% to 30% in asset size over the last two months. The bad news: what to do with all that extra cash?

WARRENVILLE, Ill.–Just as natural person credit unions are billing themselves as trusted financial advisers, corporates want to get the word out that they, too, differentiate themselves as being the trusted source to whom credit unions can turn for disinterested advice.

DALLAS - The confidence level among credit union executives continued to plummet in the first quarter, according to the quarterly survey of credit union CEOs by Southwest Corporate FCU.

WASHINGTON - When corporate credit unions shortly release their 2007 year-end financials, it is not expected most will be reporting any significant losses as a result of failed investments in mortgage-backed securities, according to a spokesperson.

LENEXA, Kan. - In another offshoot of the meltdown in the mortgage market, Standard & Poor’s said last week it downgraded its ratings for U.S. Central FCU, from its top AAA (Triple A) to AA+, citing the corporate credit union’s exposure to the mortgage market crisis.

CUs Urged To Actively Manage Savings Rates

DES MOINES, Iowa - TMG Financial Services has acquired three credit union card portfolios. Selling their portfolios were St. Cloud FCU, St. Cloud Minn., MEMBERS1st Community CU in Marshalltown, Iowa, and Wyo Central FCU in Casper, Wyo. In all, the acquisitions represent $6.3-million in account balances and 5,000 total accounts. TMG Financial Services, which launched an agent program in mid-2007, is an affiliate of The Members Group, which is jointly owned by the Iowa league and Iowa Corporate. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

WALL STREET - Fitch Ratings affirmed the long- and short-term issuer default ratings for U.S. Central FCU at its highest AAA and F1+, respectively, but changed the overall rating outlook for the corporates’ corporate to “negative” from “stable” due to U.S. Central’s continued exposure to the subprime mortgage market. U.S. Central’s “balance sheet has a low-risk profile and its funding and liquidity positions remain strong,” said Fitch. “At the same time, Fitch recognizes USC’s exposure to the troubled mortgage market, particularly non-prime mortgage-backed securities, which have generated meaningful losses and has heightened credit risk on the balance sheet.”

TALLAHASSEE, Fla. - With credit unions likely to increase the dollars they invest through corporates in 2008, Greg Wirthmann, SVP/chief investment officer with Southeast Corporate, had this advice for balance sheet management this year:

WARRENVILLE, Ill. - The Federal Reserve may be trying to urge consumers to borrow and spend their way toward a stronger economy, but credit unions shouldn’t expect members to be breaking down the door for loans, some experts suggest.

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.