Performance reports

ALEXANDRIA, Va. - NCUA said last week it has added full-time examiners and is conducting additional supervision to some credit unions in the face of huge losses being reported for 2007.

ORLANDO - How are credit unions going to differentiate themselves from other financial institutions in a way that will boost household and market penetration in 2008?

ALEXANDRIA, Va. - Credit unions moved billions of additional dollars into their loan-loss reserves in the fourth quarter, creating some of the biggest losses in the history of the industry, according to preliminary fourth quarter data submitted to NCUA.

ORLANDO, Fla. - Credit unions seeking to grow have no choice but to look to new and different sources of fuel for that growth, and that’s where REAL Solutions says comes in.

NEW YORK - More than 405,000 households were foreclosed upon during 2007, a whopping 51% increase over the 268,532 homes foreclosed upon in 2006, according to new data. During December 2007, foreclosure filings were up 97%, according to RealtyTrac, an online seller of properties in foreclosure.

WASHINGTON - It was inevitable that in lifting some of the weight off of consumers last week the Federal Reserve would squeeze credit unions and banks even more with its unexpected 75 basis-point cut in short-term interest rates.

WASHINGTON - Credit union economists are still loathe to use the dreaded “R” word, but they are ready with advice on just what it could mean for CUs if the nation slips into a recession.

Figuring out the direction of interest rates is a daunting task. You cannot press a button on a mathematical model and get the answer. Interest rates are historic phenomena. They depend crucially on forces peculiar to the economy at the time. Interest rates hit modern highs in 1981 because Federal Reserve Chairman Paul Volcker needed to turn the corner on double-digit inflation. Tight money did the trick. Interest rates hit multi-decade lows in 2003 as Chairman Alan Greenspan eased monetary policy to take out insurance against a Japanese style deflation. Today the economy is in a wholly different configuration. The largest housing bubble in U.S. history has burst, with serious repercussions for credit markets and economic growth. A credit crunch of indeterminate proportions is underway. The cat of falling interest rates is out of the bag.

MADISON, Wis. - Loan delinquencies continued to rise for credit unions, with the average delinquency ratio moving up to 0.89% for November, the highest in almost a decade, according to CUNA.

WASHINGTON - The “doom and gloom” being seen and discussed elsewhere is actually “great” for credit unions.

Periodically, outside observers reach the conclusion that the credit union industry is overcapitalized. Dr. William Jackson’s Filene Research Institute paper (Credit Union Journal, Dec. 10, 2007) is the latest example. I believe the conclusion is based on an incorrect comparison of the role of capital for credit unions versus for banks.

LOMBARD, Ill.–One analyst sees a basic growth issue for credit unions in 2008–checking accounts.

MADISON, Wis. - A study from the Filene Research Institute has concluded credit unions are significantly overcapitalized (CU Journal, Dec. 7). That has led to some feedback from credit unions disagreeing with some of the report’s conclusions (see related item, page 8).

BIRMINGHAM, Ala. - It will be all about the income in 2008, according to one expert.

ALEXANDRIA, Va. - Effective Jan. 1, the CAMEL Matrix credit unions have come to know during NCUA examinations will be replaced by a new matrix focused much more on risk.

NEW ORLEANS - Despite massive assistance by government and private sector organizations, Hurricane Katrina and its aftermath devastated credit unions in and around New Orleans, especially low-income CUs, according to a study released by the Filene Research Institute.

MADISON, Wis. - A new study seeks to get to the bottom of just how much capital is enough-and too much-for credit unions.

MADISON, Wis. - Thanks to a combination of accelerated loan growth and flat savings growth, the CU community's overall loan-to-share ratio has hit its highest mark since 1979, according to CUNA. Data show the ratio rose to 84.3% in October from 83.4% in September.

ARLINGTON, Va. - While consumers are in the grip of the holiday shopping frenzy, economists are trying to determine if the country might be in for a lump of coal in the not-too-distant future.

MADISON, Wis. - With credit union mergers occurring at the rate of approximately one per day in the United States and no sign of that pace slowing, a new research paper has been released to guide boards of directors in the process.