Performance reports

MONTEREY, Calif. — Why troubled corporates just weren't allowed to fail, what CUs need to do to get their phone calls returned in Washington, and how credit unions can better prepare for 2009 exams by regulators were all given attention during a panel discussion here.

MONTEREY, Calif. — Just four days before NCUA took over WesCorp and U.S. Central, NCUA Vice Chair Rodney Hood appeared before a California audience and was asked about the corporates' health. Here's how he responded to two questions:

]ALEXANDRIA, Va.— With bonuses for executives of the failed AIG in the news, NCUA officials were asked during a webcast whether bonuses would be paid to the two CEOs removed by NCUA in its conservatorship, Bob Siravo of WesCorp and Francis Lee of U.S. Central.

RANCHO CUCAMONGA, Calif. — During a California/Nevada league-hosted conference call on the NCUA conservatorship of WesCorp, several participants urged legal action to seek an injunction.

DES MOINES, Iowa — Iowa Central Corporate CU is working closely with its audit firm to determine any potential impairment from its our shares at U.S. Central. "We would remain well capitalized with a total capital ratio in excess of 20%, five times the regulatory minimum, in the event of a full write-down of capital shares at U.S. Central," said President Sara Flynn.

PASADENA, Calif. — For the $3.2-billion Wescom Credit Union, which has closed branches and taken other cost-cutting steps, the news that WesCorp, just 21 miles away, had been placed into conservatorship is an "expense none of us can afford right now."

WINSTON-SALEM, N.C. — Members Credit Union here expects that in addition to the 51 basis points it is already being assessed by NCUA that it will pay approximately 18% more as a result of the additional assessment.

BISMARCK, N.D. — Updating member credit unions about NCUA's actions was the first course of business at Midwest Corporate FCU, shared President Doug Wolf, who admitted he was surprised by the news.

WALL STREET — Fitch Ratings slashed its ratings last week on eight corporate credit unions it said will have most of their capital wiped out by the NCUA takeover of U.S. Central FCU.

NEW YORK-Faith-Based credit unions are being told that NCUA's corporate stabilization program will affect them "in a substantial way," including lower net income.

LAKE JACKSON, Texas — Already staring down the barrel of an $8-million assessment to replenish the share insurance fund, like other credit unions Texas Dow Employees Credit Union is now bracing for additional investment losses in the wake of the US Central and WesCorp conservatorships.

SALT LAKE CITY — A prediction that it would all "blow up some day" has come true.

COLUMBUS, Ohio — The $2-billion price tag corporates will shoulder in charging off membership capital shares and paid-in-capital at U.S. Central has members of Corporate One FCU concerned.

BURLINGTON, Mass. — One corporate is expecting the ranks of corporate CUs to get smaller.

HARRISBURG, Penn. — Mid-Atlantic Corporate FCU issued a statement to its members that read, in part, "To date the investments that Mid-Atlantic Corporate holds with U.S. Central have continued to earn dividends, and we plan on holding them to maturity. Also those deposits are guaranteed under NCUA's extended guarantee of corporate deposits. Mid-Atlantic Corporate will maintain our normal practices of analyzing and evaluating portfolio valuation and risk, and the corporate will continue to look to various investment sources as our U.S. Central investments mature.

DALLAS — The conservatorships of U.S. Central and WesCorp won't unsettle CUs that deposit with Southwest Corporate FCU, predicts Bob Rehm, the corporate's SVP of corporate relations.

SEATTLE — Despite the economy, credit unions should investigate expanding their branch networks if it will help their bottom lines in the long run.

GLENDALE, Calif. — Glendale Area Schools FCU has removed a controversial ad from its website several weeks after NCUA asked it to do so. But the CU said the ad had already accomplished its mission.

DEARBORN, Mich. — How does a credit union streamline operations, reduce the cost of generating a dollar of revenue to 48 cents from 78 cents, and then leverage those efficiencies to deliver a $17-million member dividend each of the last three years?

SACRAMENTO, Calif. — The Golden 1 Credit Union helped the State of California meet part of its budget shortfall by buying $500 million in "revenue anticipation notes" last week.