Performance reports

NEW HAVEN, Ind. – East Allen FCU is closing its Leo branch Aug. 20, due to a lack of funds, partially attributed to NCUA’s corporate assessments, it told members last week.

BALTIMORE – MECU gave its members a $2 million payout, the first half of its anticipated Christmas bonus dividend.

VIENNA, Va. – The nation’s defense credit unions, most of which successfully avoided the financial meltdown of 2009-2010, are continuing to post strong financials for the first half of 2011 – many as if there never was a national economic crisis.

ALEXANDRIA, Va. – Some of the nation’s biggest credit unions are reporting strong financials for the first six months of the year, pointing to credit union-rebound around the country, even in the hard-hit Sand States. The combination of lower loan losses and reduced expenses is righting several large credit unions that reported big losses in recent years. Florida’s biggest credit union Suncoast Schools FCU, which had $107 million in losses for 2009 and 20101, reported its second straight positive quarter producing $14.2 million in net income for the first half of 2011, as its provision or loan losses declined by $34.5 million from the same period last year. “Suncoast's improving numbers are mostly the result of extremely hard work by our staff in their efforts to limit losses by making the right decisions for our members who still face financial challenges,” said Tom Dorety, president of the $5 billion credit union. “Our conservative funding of the allowance account during the worst part of the recession is, as expected, contributing to our improving net income. We expect continuing improvement going forward and look forward to increasing the value our members receive from the credit union.” Suncoast’s Tampa neighbor GTE FCU, which reported $48 million in losses for 2009 and 2010, reported a first half net of $1.5 million. Utah’s America First CU, which had $25 million in 2009 and 2010 losses, reported a $9.3 million net for the first half of 2011. California CU, with almost $35 million of losses for 2009 and 2010, reported net income of $6.4 million for the first half; while NuVision FCU reported a $5 million net, after losses for 2009 and 2010. Arrowhead Central CU, under NCUA conservatorship after $50 million of 2009 and 2010 losses, had an $11.3 million net for the first six months. Several other large credit unions are reporting big first halves too. Washington’s BECU reported a $67.6 million first half net, more than the $63.4 million in netted for all of 2010. Minnesota’s Wings Financial CU had a $25.1 million net for the first six months, more than its $23.8 million 2010 net. California’s Star One CU had a first half net of $34.8 million, well on the way to topping last year’s $58 million net.ALEXANDRIA, Va. – Some of the nation’s biggest credit unions are reporting strong financials for the first six months of the year, pointing to credit union-rebound around the country, even in the hard-hit Sand States.

MOFFAT, Colo. – NCUA this afternoon took over Saguache County CU, a one-time $24 million community development credit union that has been operating under a state cease and desist order for two years.

ALEXANDRIA, Va. – The 2010 failure of Beehive CU, the one-time $190 million Salt Lake City credit union that failed in its effort to convert to a bank, was largely caused by weak management and board oversight and lax regulatory oversight by NCUA and state regulators, a new report issued this afternoon by NCUA’s office of the Inspector General concludes.

LAS VEGAS – Troubled Silver State Schools CU said this afternoon David Rhamy, its CEO since 1999, will retire July 11 and be succeeded by Andy Hunter, the former president of California’s Patelco CU.

JACKSONVILLE, Fla.-Community bankers are seeing some of the same numbers as credit unions and beginning to recoup some of the charge-offs that have plagued their balance sheets the past few years.

SAN ANTONIO-Despite a recent consumer survey which found a substantial segment of the public believes the economy is heading straight past a double-dip recession and on to a depression, two CUNA economists say credit unions can expect improvements on their balance sheets in the second half of 2011 and into 2012.

SAN ANTONIO-Credit unions are being cautioned that as they expand membership by adding business accounts and related services, including online banking and checking account services, they must perform proper due diligence or risk potential losses that may be uninsurable.

SAN ANTONIO-To better protect themselves and member accounts from online threats, CUNA Mutual's Ken Otsuka urged credit unions to implement the following:

HOLLYWOOD, Calif.-One unforeseen side effect of the recession and slow recovery: community development financial institutions are earning a lot more respect.

ALEXANDRIA, Va.-NCUA reported that for the eighth straight month, the NCUSIF equity ratio held stable at 1.29% as of May 31. The NCUSIF ending reserve balance stood at $1.2 billion, which included an increase of $4.3 million in reserves for May.

CLEVELAND-A local church, emerging as one of the biggest victims of last year's collapse of St. Paul Croatian FCU, has filed suit in federal court here over NCUA's denial of a $1.5 million deposit insurance claim, the latest in a growing number of legal claimants in the widening scandal.

Credit Union Journal requested an interview with NCUA to discuss a number of matters surrounding the demise of St. Paul Croatian FCU — including how so many red flags were overlooked or missed — and what steps the agency is taking in light of its own internal report that is critical of the agency. NCUA chose to reply with a written response to those questions.

EASTLAKE, Ohio-The Croatian community here is still trying to sort through the alleged criminal wrongdoing that brought down a credit union that had been a trusted presence in the community for 67 years and whose shutdown has left a void, confusion and anger.

MADISON, Wis.-A report examining credit union trends at mid-year 2011 finds the picture strongly resembles that of mid-year 2010.

SAN ANSELMO, Calif.-A new analysis suggests that the current landscape of business deposits is likely to change as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and in particular, Section 627, which repeals Section 19(i) of the Federal Reserve Act.

NEW YORK- -- Shares in M&F Worldwide, the parent of check printer Harland Clarke, soared 40% to $23.88 as the markets opened this morning after MacAndrews and Forbes Holdings, owned by billionaire corporate financier Ronald O. Perelman, offered to take the company private at a 41% premium.

IRONDALE, Ala.-Corporate America CU announced last week introduced its own mutual fund for credit unions, the Corporate America CU Short Duration Fund.