NCUA Reports FewerTroubled CUs At Mid-Year
ALEXANDRIA, Va.-The number of troubled CUs has improved-slightly. NCUA said as of June 30 the number of CAMEL code 3, 4, or 5 CUs represented 16.1% of all CU assets, down from Q1's 16.3%. Overall, 1,679 CUs were classified as CAMEL Code 3 Q2, up from Q1's total by 17. Those CUs represent $123 billion in total assets. The number of CAMEL 4 and 5 CUs, however, increased by three in Q2 to 399 Those CUs represent $57 billion in total assets, or 3.2% of all insured shares. The NCUSIF's equity ratio closed Q2 at 1.3%, even though it lost $13.4 million during the quarter.
Consumer Trust In FinancialSystem At Low Point (Again)
CHICAGO-A new survey has found Americans' trust in the U.S. financial system has declined to its lowest point since March 2009, with even credit unions not being ranked particularly highly. The June 2012 findings in the Chicago Booth/Kellogg School Financial Trust Index found trust was driven down by a signficant drop in confidence in big banks. The researchers indicated they believe the results reflect the specific timing of the survey, which took place at the same time JPMorgan Chase was revealing multi-billion losses as the result of bad trades, and at the same time the scandal related to Libor was being reported. The survey found just 23% said they trusted "national banks," while 55% said they trusted local banks, and 63% indicated trust in credit unions.
Agency Reduces ProjectedBudget For Rest Of 2012
ALEXANDRIA, Va.-NCUA announced last week it was reducing its projected 2012 budget by $2 million, but both CU trade associations pressed the agency to make additional budget cuts. NCUA said it had reduced employee pay and benefits by $3.6 million, but had also seen some increases in travel expenses, rent and other costs. The overall reduction is less than 1% of the agency's 2012 budget of $235 million. NCUA said the decrease will be deducted from what CUs would otherwise owe to fund the 2013 agency budget.
Landmark Rolls Out Easy Saver
DANVILLE, Ill.-Landmark CU has rolled out Easy Saver, an account that allows members to round up debit transactions to the nearest dollar and add the difference to their savings account. "Members are amazed at how a few cents can add up to big bucks," said Anna Melecosky, head of IT at the $60-million credit union. "They are always looking for ways to get ahead and the Easy Saver program offers them a great way to save." The program is offered through Bradford-Scott Data Corp.
CO-OP, LenderLive Team Up
RANCHO CUCAMONGA, Calif.-CO-OP Member Center, a subsidiary of CO-OP Financial Services, said it is partnering with LenderLive Network to provide credit unions with mortgage outsourcing services. The two parties said credit unions will have access to a conforming loan purchase program to provide their members a multi-product environment. LenderLive said it also brings title services in all 50 states for both origination and default management, and enables credit union members to benefit from high-touch subservicing capabilities catered to small- to mid-sized portfolios.
Branch Closed After Multiple Robberies
SIOUX CITY, Iowa-Telco Triad Community CU said last week it is closing its Council Bluffs branch because of four robberies and two attempted robberies in the past four years. TTCCU said business was also off at the 22-year-old branch, but the primary reason for the closing is the safety of the 1,700 members who use the branch.
CU Offers 'Suite Night' Of Baseball
TAMPA, Fla.-Two fans of the Tampa Bay Rays enjoyed a private suite at the baseball team's Tropicana Field, courtesy of Grow Financial FCU. The two fans were winners of the credit union's "Suite Night with the Rays" sweepstakes for the game against the Seattle Mariners. Families were given entry forms during the David Price Wallet giveaway Grow Financial sponsored during the June 17 Rays game against the Miami Marlins. The $1.8-billion CU has been teaming up with the Rays for promotions since 2009.
A story in the July 23 issue, "The Life & Death of WesCorp," incorrectly reported the timing of a $6-million payout to former Wescorp CEO Bob Siravo. The payment was made on May 13, 2008 as part of Siravo's Senior Executive Retention Plan (SERP) and was approved by the Wescorp board. The Journal incorrectly reported the payment occurred after NCUA placed Wescorp into conservatorship.