Banks Report Robust Q2 Earnings, Reductions In ALL
WASHINGTON-The banking industry earned $34.5 billion during the second quarter as continued declines in loan loss expenses outpaced a reduction in net interest margins, according to figures releasd by the FDIC. The FDIC's Quarterly Banking Profile also reported total loan balances increased by 1.4% during the quarter to $7.5 trillion. It was the fourth time in the last five quarters that loans grew.
Net operating revenue was $1.3 billion higher than it was a year earlier, an increase of 0.8%. Nearly two out of every three institutions had higher earnings than a year earlier, the FDIC said.
But the report indicated that, as has been in the case for several quarters in the row, improvements in asset quality were the primary driver of earnings.
Employee Ambushed At Home, Forced To Drive To CU
FORT WAYNE, Ind.-An employee of Freedom Financial FCU was ambushed at her home by two gunmen last week, then blind-folded and tied up before being forced to take her assailants to the credit union and to open the cash vaults, which they rifled before escaping in the employee's car.
The employee was not injured, according to police. Her vehicle was recovered near the credit union. No arrests had been made at presstime.
Members 1st FCU Rolling Out Reloadable EMV Card
MECHANICSBURG, Penn.-Members 1st FCU has begun offering its International Visa Re-loadable Pre-Paid EMV Chip Card, for members visiting locations outside of the U.S., where the magstrip cards issued in the U.S. are sometimes inoperable. The credit union said the new International VISA Re-loadable Pre-Paid EMV Chip Card delivers full debit card functionality at the point-of-sale, ATM access, cash advances, and may be used online. The card features an embedded microchip that aids in reducing the chances of unexpected transactional inconveniences.
Cal/Nev. CU Leagues Restructuring
RANCHO CUCAMONGA, Calif.-The California/Nevada Credit Union Leagues has laid off a number of people as part of a restructuring, including some well-known credit union veterans.
Among those let go was the league's frequent spokesperson, VP of Public Affairs Henry Kertman. The league has declined to name the others whose positions have been eliminated. League President Diana Dykstra said in a statement that those whose jobs were eliminated "have all been valuable and respected colleagues," but that a restructuring was necessary to better "align our services to our member credit unions in this rapidly changing environment."
Dykstra said the league will soon announce the hiring of people to fill newly created positions.
Annaloro To Retire In October
OLYMPIA, Wash.-John Annaloro, CEO of the Northwest Credit Union Association, said he will retire on Oct. 2 in conjunction with the group's annual meeting. A reception honoring Annaloro's accomplishments will be held during the proceedings on the evening of Thursday, Oct. 4. Annaloro has served as CEO of the organization for 15 years (Washington Credit Union League from 1997-2010, and the NWCUA, which represents the merger of the Washington and Oregon leagues, from 2010-present). Annaloro will be succeeded as CEO by Troy Stang, the NWCUA's current president.
CEO Files Suit Over Pay
DES MOINES, Iowa-The former president of Community 1st CU, who is battling the $400-million credit union over his July 2011 firing, filed suit in federal court last week in an attempt to gain access to $1.5 million in retirement benefits promised him under his employment contract. In his suit Terry Maloy claims the one-time Deere Community FCU did not prove his dismissal was for "cause," and thus he is due the payment promised him under the credit union's 457 (f) Retention Plan. Maloy was fired on July 8, 2011 for what the board called sexual harassment, which they say violated the retirement plan's prohibition on violation of law, rule or regulation, that is, the credit union's policy on harassment and non-discrimination. Maloy claims the directors failed to interview him until after he filed a suit in state court for wrongful termination.
CUES Names GMA Winners
MADISON, Wis. - CUES last week named the winners of its 2012 Golden Mirror Awards competition. Of the 150 GMA winners, four entrants garnered top honors, including: GMA Pinnacle Award, to John Speaker of Tulsa FCU; GMA Best Campaign to Kristen Scott of Telhio CU; GMA Rookie of the Year to Dohnia Dorman of Rio Grande CU, and GMA Golden Shoestring to Monica Gilmore of Community 1st Credit Union.
Stolen ATM Is Recovered
SUMMERVILLE, S.C. -- An ATM that was stolen from CPM FCU has been found, and two suspects are under arrest. Police found a pickup truck with the stolen ATM in the truck bed. Police say the thieves used a forklift from a nearby construction site to steal the ATM, and used the forklift knocked the ATM from its location.