Alloya Issues First Financial Report
Alloya, the large corporate credit union based in Warrenville, Ill., that rose from the failed MembersUnited, today issued its financial statement for the quarter that ended on Dec. 31 and in it the corporate reported, "On a year-to-date basis, Alloya Corporate has recorded net income of $9.6 million."
The statement -- signed by Todd Adams, CFO -- claimed, "Alloya is executing on a financial plan to earn $3 million over the next 12 months to further bolster retained earnings. When compared to the plan presented in the Private Placement Memorandum, retained earnings are 3.5 years ahead of the best case scenario targets. The retained earnings ratio of 1.2% easily exceeds the 0.45% required two years from now on Oct. 31, 2013 and is even ahead of the required 1.00% target required in 2016."
Those target numbers are contained in NCUA mandates for corporates' financial stability going forward.
The numbers self-reported by Alloya reveal a dramatically shrunken entity. A year ago, assets stood above $10 billion. At year's end 2011, they had fallen below $1.7 billion. Liabilities, however, also fell from over $10 billion to under $1.6 billion.
Adams added, "On a daily basis, Alloya is helping credit unions meet their liquidity needs through a settlement loan program which ensures they have access to sufficient funds to meet their daily operational requirements."