Performance reports

FOREST GROVE, Ore. — For the first time in eight years, credit union full-time equivalent (FTE) employee growth has not exceeded member growth.

LAKE BLUFF, Ill. — Mike Moebs, CEO of Moebs $ervices, believes that the NAFCU and CUNA effort on supplemental capital does not go far enough.

SAN DIEGO — Is the recession over? The Conference Board has stated it is. Fed Chief Ben Bernanke has said publicly the recession is technically over, and the stock markets and Wall Street are seeing signs of life. But what about Main Street?

MARSHFIELD, Wis. — A push by CUNA and NAFCU for member-only alternative (or supplemental) capital may be what's feasible today, but it could simply be a bridge to a solution to the capital dilemma that relies on many additional investment sources for CUs to thrive.

WASHINGTON–CUNA said yesterday it would join a call by NAFCU to lobby for greater access to alternative capital for credit unions. CUNA reported it will join the federal credit unions’ trade group to push for “member-only alternative capital at this time.”
In a statement, CUNA said it continues to “insist that alternative capital proposals should encompass as many options as possible to help more credit unions,” and that “broader access for credit unions to capital, and the ability of credit unions to determine for themselves, based on their needs and membership, whether that capital should come strictly from membership or other sources.”CUNA made its comments in a memo to NAFCU about alternative capital legislative proposals, stressing that “the need of a number of credit unions for alternative capital is real and immediate.”
CUNA is calling for the legislative proposals on alternative capital to be modified to include a number of additional sources for credit unions, including government assistance, other credit unions, CU sponsors and select employee groups, and others. It also is urging changes be made to Prompt Corrective Action (PCA rules). On Friday, Sept. 25, NAFCU called on CUNA to support draft language for a bill to authorize all credit unions to raise alternative capital from existing members, with several conditions.Over the weekend, NAFCU President Fred Becker told Credit Union Journal the industry is exploring several legislative avenues to boost credit union capital, which could also include enactment of risk-based capital, a solution that has eluded credit unions for the past decade. Becker said at that time that NAFCU was seeking to arrive at a consensus with CUNA, before asking for NCUA’s support.

KEY WEST, Fla. – In an unusual regulatory response, NCUA said Friday it was asked by the board of Keys FCU to take the ailing $180 million credit union under federal conservatorship.

ALEXANDRIA, Va. – NCUA said last week that various stress tests applied to the credit union system supported its decision to assess a $1.1 billion premium on federally insured credit unions this year and points to the potential for additional charges through at least next year.

ATLANTA – The FDIC on Friday seized $2 billion Georgian Bank, the 19th bank to fail in Georgia so far this year.

RENO, Nev. – In a scenario playing itself out across the so-called Sand States, poorly performing real estate loans combined with losses accrued from the corporate credit union system helped push Clearstar Financial CU over the brink last week.

WASHINGTON – Credit union leaders are trying to resolve long-time divisions in the movement over alternative capital sources in order to seek a legislative fix for the diminishing capital in the credit union system.

RENO , Nev. – NCUA took over and liquidated troubled Clearstar Financial CU last night, assigning the remnants of the one-time $175 million credit union to United FCU, of St. Joseph, Mich.

WASHINGTON — One of the key lawmakers who convinced the Financial Accounting Standards Board last spring to change mark-to-market rules as banks and credit unions were toppling vowed yesterday to end his push to change accounting rules.

NCUA's $1 billion assessment is not a surprise for most credit unions, but how it will affect bottom lines and future NCUA action is still unsure.CU Journal asked CU leaders what they expect to see as the future becomes more clear.

ALEXANDRIA, Va. – NCUA Board members conceded yesterday the $1.1 billion premium they assessed will probably be supplemented with additional charges next year and in 2011 as problems continue to grow among natural person credit unions.

DALLAS – Town North Bank, owned by credit union, announced yesterday its long-time CEO John Reap is retiring and will be succeeded by Steven McDonald, its chief financial officer since Sept. 2008.

ALEXANDRIA, Va. – NCUA yesterday appointed Scott Hunt, a 20-year veteran at the agency, director of its Office of Corporate CUs.

KEY WEST, Fla. – NCUA yesterday took under conservatorship Keys FCU, the largest credit union in the Florida Keys, which has been troubled by poor real estate loans.

LOS ANGELES – NCUA yesterday shuttered tiny Comunidades FCU, a one-time $1.6 million credit union, and authorized the assumption of the majority of its 1,100 accounts by nearby Water and Power Community FCU.

WASHINGTON – Legislation that would require an ‘opt-in’ on overdraft protection plans or bring fees charges for the program under the Truth in Lending Act discourage credit unions from offering the popular programs, also known as bounce protection, credit union executives and directors said yesterday.

MECHANICSBURG, Penn. – Members 1st FCU prevented a tax sale of the troubled Coliseum Entertainment Megaplex in Hampden Township last week by paying $102,000 in overdue property taxes on the property, according to county tax records.