Performance reports

WEST PALM BEACH, Fla.-In search of funds, banks are bidding up certificate rates across the country, forcing credit unions to rethink their pricing. In a special report in this issue, members of the CUNA CFO Council share with Credit Union Journal their response strategies for dealing with the increased rates without jeopardizing ALM. Read about the tactics they are using by clicking on the related links at right.

CFO: Dan Leclerc

CFO: Tim Lukomski

CFO: Jose Garcia

SVP: Carolyn Jordan

CFO: Peg Lamb

WASHINGTON-The credit union lobby was working last week to gain consensus on a rescue plan for troubled credit unions.

SUNNYVALE, Calif.-The news from the housing market appears to be nearly all bad, but one credit union is hanging its successful hat on real estate loans.

FAIRBORN, Ohio – Wright-Patt CU said it will pay its members a $3 million special patronage dividend on January 15 to help celebrate a successful year.

LENEXA, Kan. – The Credit Union of Johnson County said yesterday it has completed the merger of Free State CU, the ailing one-time conglomeration of four smaller credit unions.

LENEXA, Kan. – U.S. Central FCU said the spreading credit crisis tainted more of its asset backed securities in October, pushing unrealized losses on its vast investment portfolio up by another $1.2 billion, to a total of $7.3 billion.

ALEXANDRIA, Va.-Increasing loan losses forced credit unions to move billions of dollars of new funds to reserves in the third quarter and pushed the key profitability ratio, return-on-assets, down to just 0.12% for the quarter, the lowest in decades, NCUA reported.

PROVO, Utah-Delinquency ratios at credit unions in all regions in the country are up over one year ago, with the Southeast, the mountain states and the West Coast seeing the sharpest increases. Analysis released by CUData.com shows that for the third quarters of 2008 credit unions in a region running from Nevada to New Mexico and north to Montana and Idaho have seen an 86.2% increase in delinquencies over the same period one year earlier. Washington, Oregon and California have seen an 82.9% increase in delinquencies over the same period, followed by the Carolinas, Georgia and Florida, which have watched member delinquencies rise 79%. Five Midwestern states-Wisconsin, Illinois, Michigan, Indiana and Ohio-have enjoyed a relatively moderate 5.3% increase over the same period. Since the beginning of 2008, credit unions have charged off more than $31 million in bad loans through the first three quarters.

MUSKEGO, Wis. – Corporate Central Credit Union is paying a $600,000 Patronage Refund for 2008 to its member credit unions.

SAN FRANCISCO - Stan Hollen, CEO, CO-OP Financial Services

ALEXANDRIA, Va. - NCUA proposed a plan last week to funnel billions of dollars in low-cost funds to credit unions to help them refinance member mortgages headed for foreclosure.

DENVER – Payments processor First Data Corp. said Friday interest expense related to last year’s $27 billion takeover by Kohlberg Kravis Roberts & Co., created a $174.4 million loss for its third quarter, and a $546.7 million loss for the first nine months of the year.

SPRINGFIELD, Ill. - Six credit unions received almost $83 million in new deposits from the state Treasurer's Office under a plan to infuse as much as $1 billion into Illinois banks and credit unions.

DALLAS - With few exceptions, credit unions should be comfortable letting net income decline in the current market, according to Bill Hampel, who is urging CUs to be level headed-headed in responding to economic pressures.

WASHINGTON - In a major about-face, the Treasury Department last week announced it will not be using the $700 billion approved by Congress last month to buy distressed mortgage assets as it had planned to do all along, effectively eliminating credit unions from the government's financial bailout plans.