Performance reports

ALEXANDRIA, Va. – Earnings at the nation’s credit unions continued to surge in the fourth quarter, creating record net income for the year, NCUA reported this morning, the latest sign the travails of the financial crisis have been left behind.

WOODBURY, Minn. – Postal CU yesterday said it paid its most loyal members a bonus dividend totaling $535,000 as part of its VIP Program.

Rich Weissman, president CEO of DMA, outlined five funds transfer pricing models, from simple to complex.

NCUA last week asked a federal bankruptcy court in the huge Residential Capital Chapter 11 bankruptcy to expedite more than $300 million of claims related to the 2009 collapse of WesCorp FCU, one of dozens of investors in mortgage-backed securities issued by the one-time subprime mortgage subsidiary of GMAC.

ALBUQUERQUE, N.M. – New Mexico Educators FCU, the state’s second biggest credit union with $1.3 billion in assets, said this afternoon it has agreed to acquire troubled New Mexico Energy FCU, a $49-million credit union also based in Albuquerque.

ALEXANDRIA, Va. – The NCUA Board this morning added Treasury Inflation Protected Securities, Treasury securities indexed to the rate of inflation that are known as TIPS, as permissible investments for federally chartered credit unions.

DETROIT – The Michigan Office of Financial and Insurance Regulation yesterday shut down and liquidated Amez United CU, a credit union with just $169,000 in assets and serving 158 members churches in the Detroit district of the Michigan Conference of the African Methodist Episcopal Zion Church.

For credit unions to improve non-interest income this year, or just keep to keep that line item flat, they will need to focus on several key areas-including overdraft fees and new fees charged for the CU's service and expertise, according to one person.

With three bogeys on the horizon threatening non-spread revenue, Dave Colby thinks the best ways to attack those potential problems are to increase the volume of activity on transaction accounts and simply grow loans.

Credit unions still have plenty of opportunity to boost their non-interest income streams through interchange revenue, but they need to take action now if they don't want to lose that business once mobile and EMV become major players.

Non-interest income will be down this year industry wide, cautions one economist who feels there's room for many CUs to increase their fees as well as leverage CUSOs to help soften the blow.

Non-interest income at credit unions may have reached a recent-year high, but multiple threats to what has been a growing revenue stream have analysts recommending it's time for improved and new income approaches.

Saying credit unions can't continue to rely as heavily on non-interest income as they have in recent memory-and certainly not the same sources-Bill Handel is urging CUs to lean on their abilities to price effectively and leverage CUSOs to keep the bottom line intact.

At least one analyst is concerned credit unions are reversing their own bottom lines when it comes to fee reversals.

Not only should credit unions be making loan applications available online, but they can boost their non-interest income revenue by adding an option for insurance quotes at the end of those applications.

LAS VEGAS – One Nevada CU, the state’s biggest credit union, reported a $1.4 million net for the fourth quarter and a $2.5 million net for the year—shedding red ink for the first time since 2008.

BURBANK, Calif. – Logix FCU, formerly Lockheed Employees FCU, on Tuesday said it is paying its members a $5.5 million loyalty dividend.

Altura Credit Union, which has gone through tough times in a tough market, doubled its net income in 2012 over 2011, giving the $655-million CU its "best year in history."

Qualstar CU is paying members $2.5 million in bonus dividends.

ALBUQUERQUE, N.M. – New Mexico Educators FCU is paying members a $4 million special dividend, with members who maintained certain deposit loan balances and participated in the credit union’s Earn Your Return program receiving payouts ranging from $25 to $1,000.