SALT LAKE CITY (5/28/09)--Credit Unions for Kids, a credit union industry effort to raise money for Children's Miracle Network, contributed $9,322,827 to children's hospitals in 2008, making it the third largest fundraising sponsor for the charity.
"Credit Unions for Kids increased their fundraising efforts by 16% over 2007, which, in light of the current economy, demonstrates the credit union industry's resiliency and also their exemplary commitment to philanthropy during these hard times," said Joe Dearborn, Children's Miracle Network senior director.
Credit Unions for Kids raises money for 170 Children's Miracle Network hospitals nationwide. The events and amounts raised were:
The Credit Union Cherry Blossom Ten Mile Run, $1 million;
Tampa Bay Area Credit Unions Golf Tournament, $330,000;
Desert Schools FCU Golf Tournament, $221,000;
Hank & Moose Golf Tournament, $220,000;
Oregon and Southwest Washington Credit Unions for Kids Wine Auction, $205,000; and
California/Nevada Credit Unions for Kids Wine Auction, $190,000.
The CO-OP Financial Services Miracle Match program also saw more than 70 credit unions and their respective hospitals benefit from matching funds. The credit unions raised more than $1 million, with CO-OP matching $520,000 to bring their contribution to more than $1.5 million.
The top five markets for raising the most money include: Portland, Ore.; Phoenix; Washington, D.C.; Austin, Texas; and San Antonio.
The top 10 states that raised the most money are:
Texas;
Oregon;
California;
Arizona;
Wisconsin;
Washington, D.C.;
Florida;
Georgia;
Washington; and
Utah.
courtesy of cuna.org
Thursday, May 28, 2009
Bank earnings low, but best in a year
WASHINGTON (5/28/09)—Although bank and thrift earnings were down more than 60% from a year ago, the Federal Deposit Insurance Corp. (FDIC) reported Wednesday that net income for its federally insured institutions for the first quarter of 2009 was the best it's been in four quarters.
Net income for the January 1-to-March 31 period was $7.6 billion, down $11.7 billion, or 60.8%, from the $19.3 billion the industry earned in the first quarter of 2008. However, the picture looks brighter when compared to the reported $36.9 billion of losses in the fourth quarter of last year.
The FDIC attributed the year-to-year earnings drop, in part, to higher loan-loss provisions, increased goodwill write-downs, and reduced income from securitization activities. The agency said three out of five insured institutions reported lower net income in the first quarter and one in five was unprofitable.
The FDIC's Quarterly Banking Profile also reported that the agency's Deposit Insurance Fund (DIF) reserve ratio fell to 0.27%, a decline from 0.36% of insured deposits. Other points of interest:
The FDIC has set aside $28 billion in reserve to cover projected losses for the next 12 months;
The FDIC will collect more than $8 billion in premiums during the second quarter, including $5.6 billion from the special assessment the FDIC Board approved on May 22; and
insured deposits increased 1.7% in the quarter -- approximately $82 billion -- and are up 9% over the last 12 months.
FDIC Chairman Sheila Bair said in a release that the growth in insured deposits is a "vote of confidence from bank customers" who "obviously see the value of the FDIC guarantee."
The National Credit Union Administration released comparable figures regarding first-quarter performance by federally insured credit unions Wednesday. (See related story: CU membership, assets, savings grow; net income down.)
courtesy of cuna.org
Net income for the January 1-to-March 31 period was $7.6 billion, down $11.7 billion, or 60.8%, from the $19.3 billion the industry earned in the first quarter of 2008. However, the picture looks brighter when compared to the reported $36.9 billion of losses in the fourth quarter of last year.
The FDIC attributed the year-to-year earnings drop, in part, to higher loan-loss provisions, increased goodwill write-downs, and reduced income from securitization activities. The agency said three out of five insured institutions reported lower net income in the first quarter and one in five was unprofitable.
The FDIC's Quarterly Banking Profile also reported that the agency's Deposit Insurance Fund (DIF) reserve ratio fell to 0.27%, a decline from 0.36% of insured deposits. Other points of interest:
The FDIC has set aside $28 billion in reserve to cover projected losses for the next 12 months;
The FDIC will collect more than $8 billion in premiums during the second quarter, including $5.6 billion from the special assessment the FDIC Board approved on May 22; and
insured deposits increased 1.7% in the quarter -- approximately $82 billion -- and are up 9% over the last 12 months.
FDIC Chairman Sheila Bair said in a release that the growth in insured deposits is a "vote of confidence from bank customers" who "obviously see the value of the FDIC guarantee."
The National Credit Union Administration released comparable figures regarding first-quarter performance by federally insured credit unions Wednesday. (See related story: CU membership, assets, savings grow; net income down.)
courtesy of cuna.org
Membership, assets, savings up; net worth drops as expected
ALEXANDRIA, Va. (5/28/2009)—Although fewer loans were issued, the National Credit Union Administration (NCUA) Wednesday reported a double-digit increase in overall member share accounts among its 7,749 federally insured credit unions during the first three months of 2009.
The NCUA also reported the return-on-average-assets (ROA) ratio declined from negative 0.01% at yearend 2008 to negative 1.51% at the end of March. However, the NCUA's reported ROA decline does not consider what earnings would have been absent the NCUA's corporate stabilization costs, which can be spread out under provisions signed into law last week.
CUNA economists estimate with that taken into account, ROA would have been close to break even.
Lending growth overall was essentially flat, with mortgage lending staying apace with other loan products that showed little or negative growth, primarily as a result of historically low home loan rates.
Yet, credit unions continued to maintain strong capital levels, at close to 10%, despite a slow economy and the expense of the corporate stabilization program.
In a statement accompanying the release of the quarterly figures, NCUA Chairman Michael Fryzel said that credit union members were "strong depositors, posting gains in every category" of member share and savings accounts during the 2009 first quarter.
Fryzel noted that credit unions' continued strong capital levels came despite negative effects of the still-troubled economy and the estimated costs associated with National Credit Union Share Insurance Fund replenishment for corporate stabilization costs.
Credit union financial positions overall will be substantially improved by the aforementioned, recently signed law that allows credit unions to spread costs associated with the NCUA's stabilizations efforts over seven and eight years.
Also noted in the report, the net worth of federally insured credit unions declined by 3.9% percent during the quarter, to a total of $83.1 billion.
By the numbers, the total assets held by federally chartered credit unions increased by 5.6% to a total of $856.4 billion. Total investments increased by 14.5%t and shares increased by 6.4%, for totals of $189.8 billion and $724.5 billion, respectively.
Share drafts increased by 6.7%, regular shares increased by 7.9%, money market shares increased 8.2%, share certificates grew 3.9%, and IRA/KEOGH accounts rose by 6.5%, NCUA said.
Credit unions' overall loan delinquency rate showed the smallest quarterly increase in more than a year, to 1.44% at March 31 up from 1.37% at year-end 2008.
courtesy of cuna.org
The NCUA also reported the return-on-average-assets (ROA) ratio declined from negative 0.01% at yearend 2008 to negative 1.51% at the end of March. However, the NCUA's reported ROA decline does not consider what earnings would have been absent the NCUA's corporate stabilization costs, which can be spread out under provisions signed into law last week.
CUNA economists estimate with that taken into account, ROA would have been close to break even.
Lending growth overall was essentially flat, with mortgage lending staying apace with other loan products that showed little or negative growth, primarily as a result of historically low home loan rates.
Yet, credit unions continued to maintain strong capital levels, at close to 10%, despite a slow economy and the expense of the corporate stabilization program.
In a statement accompanying the release of the quarterly figures, NCUA Chairman Michael Fryzel said that credit union members were "strong depositors, posting gains in every category" of member share and savings accounts during the 2009 first quarter.
Fryzel noted that credit unions' continued strong capital levels came despite negative effects of the still-troubled economy and the estimated costs associated with National Credit Union Share Insurance Fund replenishment for corporate stabilization costs.
Credit union financial positions overall will be substantially improved by the aforementioned, recently signed law that allows credit unions to spread costs associated with the NCUA's stabilizations efforts over seven and eight years.
Also noted in the report, the net worth of federally insured credit unions declined by 3.9% percent during the quarter, to a total of $83.1 billion.
By the numbers, the total assets held by federally chartered credit unions increased by 5.6% to a total of $856.4 billion. Total investments increased by 14.5%t and shares increased by 6.4%, for totals of $189.8 billion and $724.5 billion, respectively.
Share drafts increased by 6.7%, regular shares increased by 7.9%, money market shares increased 8.2%, share certificates grew 3.9%, and IRA/KEOGH accounts rose by 6.5%, NCUA said.
Credit unions' overall loan delinquency rate showed the smallest quarterly increase in more than a year, to 1.44% at March 31 up from 1.37% at year-end 2008.
courtesy of cuna.org
Wednesday, May 27, 2009
Thrifty travel tips for summer fun
LOS ANGELES (5/27/09)--More Americans are planning to stay put during the summer travel season due to financial concerns.
Only 42% of Americans plan to spend their time and money on a vacation this summer, compared with 49% who planned to travel in 2005. A third have already cancelled at least one trip because of squeezed budgets (LATimes.com May 19).
Despite the pressure on purse strings during tough economic times, there are ways to have frugal fun in the sun without burning a hole in your wallet (Readers Digest June):
Budget basics. Identify how much you have to spend on your excursion. Consider expenditures on meals, souvenirs, transportation, lodging and entertainment. Be sure to include funds for unexpected expenses, and take into account any membership or organizational discounts such as AAA.
Flight control. If possible, check flights and cost information at 12:01 a.m. Wednesday in the time zone where the airline is based. You also can track the price of flights before, and after, you book them. Websites like yapta.com will notify you if the rate drops, enabling you to contact the airline for a refund of the price difference.
Wheels and lodging deals. Use bargain travel sites like Hotwire.com to search for low rates on rooms and rental cars. When renting a vehicle, choose a location close to your hotel or airport to avoid airport convenience fees. Use Hotels.com when searching for lodging. The site offers discounted rates on rooms and a price match guarantee.
Travel insurance. This relatively inexpensive "extra" may save you a lot of hassle and expense even if your trip costs only a few hundred dollars. Basic travel insurance will cover things like delays, lost baggage and emergency medical expenses. Use insuremytrip.com to compare plans.
Last minute planning. When you have little time to plan, use lastminute.com to find travel packages that include transportation and lodging. Other sites, like airfarewatchdog.com, list reduced prices for last-minute air travel.
For more information, read "Rental Cars: Two Wrongs Don't Make a Right" and listen to "Travel Tips That Save You Money" on Home and Family Finance Resource Center. Also watch "Keep Your Travel Money Safe" on MoneyMix: Launch Your Life.
courtesy of cuna.org
Only 42% of Americans plan to spend their time and money on a vacation this summer, compared with 49% who planned to travel in 2005. A third have already cancelled at least one trip because of squeezed budgets (LATimes.com May 19).
Despite the pressure on purse strings during tough economic times, there are ways to have frugal fun in the sun without burning a hole in your wallet (Readers Digest June):
Budget basics. Identify how much you have to spend on your excursion. Consider expenditures on meals, souvenirs, transportation, lodging and entertainment. Be sure to include funds for unexpected expenses, and take into account any membership or organizational discounts such as AAA.
Flight control. If possible, check flights and cost information at 12:01 a.m. Wednesday in the time zone where the airline is based. You also can track the price of flights before, and after, you book them. Websites like yapta.com will notify you if the rate drops, enabling you to contact the airline for a refund of the price difference.
Wheels and lodging deals. Use bargain travel sites like Hotwire.com to search for low rates on rooms and rental cars. When renting a vehicle, choose a location close to your hotel or airport to avoid airport convenience fees. Use Hotels.com when searching for lodging. The site offers discounted rates on rooms and a price match guarantee.
Travel insurance. This relatively inexpensive "extra" may save you a lot of hassle and expense even if your trip costs only a few hundred dollars. Basic travel insurance will cover things like delays, lost baggage and emergency medical expenses. Use insuremytrip.com to compare plans.
Last minute planning. When you have little time to plan, use lastminute.com to find travel packages that include transportation and lodging. Other sites, like airfarewatchdog.com, list reduced prices for last-minute air travel.
For more information, read "Rental Cars: Two Wrongs Don't Make a Right" and listen to "Travel Tips That Save You Money" on Home and Family Finance Resource Center. Also watch "Keep Your Travel Money Safe" on MoneyMix: Launch Your Life.
courtesy of cuna.org
CUs' better card rates more evident with new law
MADISON, Wis. (5/27/09)--A new law--the Credit Card Accountability, Responsibility and Disclosure Act of 2009, know by the partial acronym the "Credit CARD Act," which is expected to tighten credit card regulations--may make credit unions' credit card rates more visible, according to several major media outlets.
Credit cards from credit unions are "better deals than bank credit cards--and this should become more evident" with the new legislation, MarketWatch said Tuesday.
It's a good time to shop around for a better credit card, according to The Wall Street Journal (May 22). Consumer should consider smaller financial institutions or credit unions "that may be more eager for your business," the newspaper said.
Ed Lawrence, finance professor at the University of Missouri-St. Louis, told the St. Louis Post-Dispatch Sunday that "I would just quit using [my card] if they started putting annual fees on it. A lot of credit unions don't charge annual fees, so people would have choices."
MarketWatch also noted that some credit unions may pass fees assessed by MasterCard and Visa to cardholders, but credit unions will not add them to balance transfers, international transactions and cash advances.
courtesy of cuna.org
Credit cards from credit unions are "better deals than bank credit cards--and this should become more evident" with the new legislation, MarketWatch said Tuesday.
It's a good time to shop around for a better credit card, according to The Wall Street Journal (May 22). Consumer should consider smaller financial institutions or credit unions "that may be more eager for your business," the newspaper said.
Ed Lawrence, finance professor at the University of Missouri-St. Louis, told the St. Louis Post-Dispatch Sunday that "I would just quit using [my card] if they started putting annual fees on it. A lot of credit unions don't charge annual fees, so people would have choices."
MarketWatch also noted that some credit unions may pass fees assessed by MasterCard and Visa to cardholders, but credit unions will not add them to balance transfers, international transactions and cash advances.
courtesy of cuna.org
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