Credit unions

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.

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.