Performance reports

NORTH CANTON, Ohio – Diebold reported a second quarter loss this morning of $98.6 million, amid a 5% decline in revenue and growing legal problems.

CINCINNATI – Fifth Third Bancorp said it has agreed to sell another five million shares of Vantiv, the one-time Fifth Third Processing Solutions it took public two years ago, at a pretax gain of about $85 million.

SAN ANTONIO – Harland Clarke Holdings Corp., the world’s biggest check printer, reported that second quarter losses increased to $22.8 million amid costs related to billionaire Ronald Perelman taking the company private a year ago.

ATLANTA – First Data Corp. reported a 20% surge in second quarter losses to $189.1 million this morning, as debt service incurred from its 2007 leveraged buyout by Kohlberg Kravis Roberts, one of the biggest LBOs ever, continued to erase all of its substantial operating profits.

WASHINGTON – CUNA has asked NCUA to consider suspending its annual corporate bailout assessments next year as losses on the remnants of the five corporate failures continue to decline.

Credit unions continued to chop loan reserves and prune their expenses in the first half of the year by slashing cost of funds-the dividends they pay to members-to maintain the record net income of the past two years.

Credit unions must now pay attention to an increasingly volatile long end of the yield curve, as well as to the stability of core deposits.

One analyst predicts a slow and gradual rise in interest rates in the remainder of the year, accompanied by a marked increase in mortgage lending.

LAS VEGAS – The economic turnaround continues to improve the fortunes of some of the country’s hardest hit credit unions.

TUKWILA, Wash. – BECU, the nation’s third-largest credit union, reported a 53% surge in midyear earnings to $109.6 million, fueled by a slashing of provision for loan losses and a cut in cost of funds.

LAS VEGAS – Clark County CU reported $2.3 million in net income for its second quarter, the latest Nevada credit union to indicate a rebound in the state’s financial fortunes.

VIENNA, Va. – Navy FCU reported this afternoon that net income for the first six months of the year rose 20% over the same period last year to a record $439 million.

ALEXANDRIA, Va. – Credit unions continued to chop loan reserves and to prune their expenses in the first half of the year by slashing cost of funds—the dividends they pay to members—in order to maintain the record net income of the past two years.

OTTAWA, Canada—Canada’s largest faith-based credit union has taken steps to live that faith. Benjamin Jantzen, whose title is Stewardship in Action Advisor with the (CDN) $850-million Mennonite Savings and Credit Union, told the World CU Conference his credit union has for the last four years been working to “change the way we were growing our community.”

LAS VEGAS – One Nevada CU, the state’s largest federally insured credit union that has been battered by the recession, reported a $2.3-million net for the second quarter and a $3.6-million net for the first six months of the year.

CLEVELAND – State regulators this afternoon shuttered Taupa Lithuanian CU, a $23.6 million credit union, and appointed NCUA has liquidating agent for the year’s 12th credit union failure.

Los Angeles Police Federal Credit Union says its hybrid carrot and stick "Member Benefits" program has added $155,023 to its bottom line since it was introduced six months ago.

Since May 1 rates have been rising, but John Worth is advising credit unions not to be "fooled" into inaction against interest rate risk.

A decline in delinquent loans is providing some help for the "Texas ratio," nonperforming assets divided by the sum of total equity and loan loss reserves, at credit unions.

BOSTON – NCUA said this morning it is building a new risk-based capital framework tailored to protect the industry from losses.