Performance reports

MADISON, Wis.-Can a credit union have too much of a buffer?

MADISON, Wis.-Concerned as well with shrinking margins and "glad the capital is there," CUNA Mutual Group Chief Economist Dave Colby said the current high average capital levels give "a little cushion to credit unions that want to take advantage of some of the customer dislocation or dissatisfaction with the mega-merger banks. Credit unions know their markets very well. If they see demand from consumers to switch institutions, they are now in a strong position to set the rules-come over to the credit union with your CD, but bring your car loan too."

ARLINGTON, Va.-Decisions regarding the function of capital are expected to get a lot tougher for credit unions in 2009 as many wrestle with shrinking net income, and others are content to keep that number flat.

NEW YORK-2009 will continue the trend seen at the end of last year as the American economy speeds headlong into the trough of one of the nastiest recessions on record, according to one analyst's projections.

MADISON, Wis.-The economic forecast for 2009 leaves a lot to be desired, but the new year could provide more opportunities to benefit from the banking crisis before a slow recovery begins, several economists say.

SLEEPY EYE, Minn.-Focusing on the long-term for both the credit union as a whole and the relationship with each individual member has helped Southpoint Federal Credit Union earn the number-two spot on Callahan & Associates' Return of the Member overall rankings.

CINCINNATI–Communicating Arts Credit Union has declared a 2008 bonus dividend for members of $140,000. The bonus will be calculated at 5% of the total dividends the member earned on savings during the year and 5% of the interest the member paid on loans durin gthe year.

FORT WORTH, Texas–American Airlines FCU will distribute about $11 million in bonus dividends to its members, a new record for the credit union.The bonus dividend is based on dividends earned on qualifying share accounts and/or interest paid on applicable loans in 2008. Both the savings and loan portions of the dividend were calculated at an annual rate of 3%.This year, an additional $80 bonus was give to members who maintained three or more account categories, as well.

SPRINGFIELD, Mo.–CU Community is closing out 2008 with a bonus dividend for its members. Each member will receive as much as an additional 50 basis points on their fourth quarter savings account earnings.

WASHINGTON – When 2008 made its debut some were predicting that as many as several hundred banks would fail and would be taken over by regulators. Yet while the year saw the collapse of Washington Mutual as well as the largest bank failure in history, that of IndyMac Bank, only 25 banks failed – well short of what many had feared.

MADISON, Wisc.-With credit union losses from Hurricane Ike totaling $10.2 million to date, 2008 will go down as one of the tougher years for natural disasters in the CU community, CUNA Mutual Group is reporting.

ARLINGTON, Va.-The market and economic crashes of 2008 are forcing some new thinking of a 2007 study that had suggested credit unions may be overcapitalized.

CLARKSVILLE, Tenn. – Fort Campbell FCU announced yesterday it paid members a patronage dividend for the fourth year in a row, a $1.5 million payment this year.

BILOXI, Miss. – Keesler FCU announced yesterday it is paying its members a $3.5 million bonus dividend on New Year’s Day.

PEORIA, Ill. – CEFCU said it paid its members an extraordinary dividend of $6 million, the eighth straight year for a year-end payout.

ALEXANDRIA, Va. – The National CU Share Insurance Fund, which has been battered by growing losses among California credit unions, is expected to take another big hit from the newly announced deal to sell the remnants of one-time $305 million Valley CU to Illinois credit union giant Citizens Equity Financial CU.

HARRISBURG, Penn.-Being a "virtual" credit union has its advantages, says Greg Smith, CEO of Pennsylvania State Employees Credit Union, who believes that operating almost "branchless" has helped his shop withstand the recession and grow loans by $250 million this year.

WASHINGTON-With Congress and Treasury highly focused on the state of financial services, could this be the opportune time to push for capital reform for credit unions?

WASHINGTON-Plans by NCUA to use the emergency loan fund, known as the Central Liquidity Facility, as the linchpin of a long-term rescue of the credit union system will be decided by Congress, soon after lawmakers return to Capitol Hill early next year.

LANSING, Mich.- Credit unions throughout the Midwest, many of which are sponsored by automakers, have unveiled a plan to help General Motors by providing as much as $10 billion in low-rate loans to purchasers of GM brands.