SAN DIMAS, Calif. – NCUA said yesterday after news of the failed recapitalization by WesCorp FCU it has no plans to shutter the failed corporate credit union and is now soliciting acquirers to obtain the WesCorp business in a way that will have minimal disruption of member credit unions.

SAN DIMAS, Calif. – WesCorp FCU, trying to re-charter as United Resources FCU, said this afternoon it fell $110 million short of its capital raise goal and is working with NCUA on an alternative plan. United Resources’ capital call period ended yesterday, raising approximately $90 million, far less than the $200 million sought. Matt Davidson, United Resources chair and CFO for the $3.1-billion Kern Schools FCU, suggested that NCUA will now guide the future of the former WesCorp, and hoped Western Bridge operations and its members can be moved in whole to another corporate. “It is a sad day,” he told the Credit Union Journal. The one-time $34 billion corporate has been under NCUA conservatorship since March 2009 and is one of five failed corporate credit unions. A communication from United Resources President Phil Perkins and Davidson to the corporate’s members asked them to “await the new proposal and to take the time needed . . . to give it the due diligence and consideration.” The communication said that “more concrete details and time frames” will be shared as soon as possible. “For now, if you committed capital to United Resources, it is safe and will be returned to you,” the letter stated. “Furthermore, there is no need to rush to invest in an alternative solution.” Davidson said NCUA had reaffirmed that continuity of service and operations for all Western Bridge member credit unions will be maintained. “There are no plans to close Western Bridge’s operations, move credit unions off the platform, or begin winding down.” David Small, NCUA spokesman and assistant director of public affairs, has reported that if a corporate fails to raise the necessary capital that the agency will begin the process of winding it down. “NCUA will wait to hear the final results of the capital raises in order to give every credit union the opportunity to decide on whether they choose to support the member-driven solution, or transition their services to another service provider,” Small informed the Credit Union Journal last week.

ALEXANDRIA, Va. – Share growth among credit unions stagnated in the second quarter, growing by just 0.1%, while loans expanded a tepid 0.7%, NCUA reported this afternoon.Despite the sluggish loan growth, second quarter results represent a reversal of the three previous quarters of declining loan volumes.Still, return-on-assets, the industry’s key profitability indicator, increased to a strong 77 basis points, fueled by better cost controls and lower loan losses. The mid-year ROA is up slighly from the 74 bps for the first quarter, and the 51 bps for all of 2010.“The second quarter financials demonstrate the continued resilience of the credit union industry,” said NCUA Board Chairman Debbie Matz. “Specifically, I am pleased to see that net income has risen significantly since 2010, and that lending has grown for the first time in four quarters.Delinquencies remain near historically high levels, but they continue to trend downward. In the second quarter, credit unions reported a loan delinquency ratio of 1.58%, a 5 basis point improvement from the prior quarter. Similarly, the net charge-off ratio declined to 0.95% in the second quarter, a drop of 5 basis points from the end of March.Credit unions also reported 76,720 members filing bankruptcy in the second quarter, a 13% drop compared to first quarter filings. The percentage of loans charged off due to bankruptcy rose slightly to 24% through June 30, while the change in outstanding loans subject to bankruptcy dropped by 31% since the prior quarter-end.

VIENNA, Va. – Navy FCU announced this afternoon it is slashing rates on its 36-month new auto loans to just 1.79%, believed to be the lowest in the country.

ROUND ROCK, Texas – Two men involved in a robbery at Austin Telco CU Monday beat several workers with handguns and kicked them in the face and head, according to police.

BILLINGS, Mont. – Valley FCU said C.H. “Chuck” Steele, its president and CEO the past 26 years, is retiring as head of the $170-million credit union at year end.

CLEVELAND – Firefighters Community CU has signed a multi-year contract with CRI Solutions to provide both its CRIterion and InterLend products to help increase productivity and simplify workflow for the credit union.

MANCHESTER, N.H. – St. Mary’s Bank has signed with CO-OP Financial Services for debit card program management and payment processing services.

MANHATTAN BEACH, Calif. – Kinecta FCU has launched a new Asset Utilization Loan Program that will allow high-worth borrowers to use a percentage of their liquid assets as income for qualifying purposes for its mortgage lending division.

PLYMOUTH, Minn. – TruStone Financial FCU has chosen to implement Fiserv’s Acumen account processing solution.

SANTA ROSA, Calif. – Redwood CU has signed an online marketing contract with Zenergy Works of Santa Rosa.

HUNTINGTON BEACH, Calif. – NuVision FCU has sold its office building at 1155 Corporate Center Drive in Monterey Park, Calif., to International Union of Painters & Allied Trades for $4.8 million, or about $224 per square foot.

DUBUQUE, Iowa – Dupaco CU is using location-based social media application FourSquare to reward members who visit its branches with prizes ranging from koozies (rubber drink covers) to $50 gas cards to the chance to be featured on billboards.

SCHAUMBURG, Ill. – Officials with Members United (Bridge) Corporate FCU said it has received ongoing commitments from as many as 1,000 credit unions nationwide and expects to raise about $75 million in new capital to enable it to emerge from NCUA conservatorship as a new entity called Alloya Corporate FCU.

ALEXANDRIA, Va. – NCUA on Wednesday said federal credit unions may provide emergency financial services to anyone, even non-members, during natural disasters and other emergencies, such as Hurricane Irene.

WARRENVILLE, Ill. – Alloya Corporate FCU, the newly chartered remnant of Members United Corporate FCU, said this afternoon it has raised $71 million in new capital, allowing it to move forward with the reorganization under NCUA’s new cpaital rules.

ATLANTA – Well-known credit union vendor S1 Corp. told shareholders this morning to hold their stock until the board has weighed the latest takeover offer from ACI Worldwide, which is seeking to top a competing merger agreement between S1 and FundTech.

NEW YORK – NCUA and more than three dozen other investors on Monday lodged objections to Bank of America Corp's $8.5 billion settlement of claims over losses on mortgage-backed securities, joining a growing list of investors and regulators that are challenging the deal.

PASADENA, Calif. – Wescom Central CU on Tuesday said it has installed Akcelerant’s SOLUTION.LENDING loan origination solution.

HONOLULU – Hawaii Pacific FCU has selected Open Solutions’ DNAtMagic Integrated Teller Capture and OpenCheck Outsourced Item Processing to streamline its operations, improve performance and reduce operating costs.