While it is hard to put a final price tag on the cost of lives,homes and businesses throughout New York affected by HurricaneSandy, federal funds will cover all of New York City's costs,according to a recent report from the city's Independent BudgetOffice.

About 90% of the total $6.3 billion in Sandy-related emergencyand recovery package will be funneled through the Federal EmergencyManagement Agency. The remaining 10% will be covered with communitydevelopment block grant funds.

The other good news for the Empire State is that 73% of itscredit unions reported a positive Return on Average Assets as ofDec. 31, 2012. Statewide,New York's credit unions earned an average ROAA of 87 basis points,slightly higher than the national average of 86.

• SEE the NCUA state-by-state map and more Credit UnionTimes analysis.

“New York credit unions have posted strong financialperformance, exceeding national averages in key areas such as assetgrowth, loan growth and net worth, for several years,” said WilliamMellin, president/CEO of the Credit Union Association of New York. “First mortgages andmember business lending have been significant driving forces behindthe sustained loan growth.”

Some credit unions in New York made it through the stormunscathed while others were battered, flooded and closed for days,making it difficult for members and credit union employeesalike.

“This year has been particularly challenging for our membershipin the aftermath of Hurricane Sandy,” said Edward Paternostro, CEO ofthe $2 billion Nassau Educators FCU on Long Island. “Many of our members losttheir homes and other property and many are still deep in therecovery process and looking to NEFCU for support.”

As of Dec. 31, NEFCU's 12-month loan growth was an impressive14.93% and assets posted a 10.60% gain. After dipping below9% in the second quarter, the credit union recovered net worth toclose out 2012 with 9.22%.

Despite the recession, NEFCU has posted robust loan growth foryears, with only a few quarters below 10% growth since 2007. In2010, the credit union converted from a SEG based charter to acommunity charter, which has boosted market share and membershipgrowth figures.

NEFCU's ROAA is below the peer average of 0.93%, with the creditunion reporting 0.77% as of Dec. 31.

“We deliberately do not manage to a high ROAA,” Paternostrosaid. “Because we are a highly capitalized and efficientorganization with low expense ratios, we have the ability todecrease our interest rate margins and offer our member the bestrates in the Long Island marketplace. This has been a successfulstrategy for growth and one that we will continue in 2013.”

Indeed, Paternostro's operating expenses to average assets waswell below average as of Dec. 31, with the credit union reporting2.25% compared to 3.19% reported by peers. Loan yield was belowaverage at 4.6%, but a high 2.10% average investment yield boostedthe credit union's net interest margin to 2.75%, just 15 basispoints below peer average.

Member-leaning financials like low fee income, which was alittle more than half of peer average as of Dec. 31, and higherthan average cost of funds offset the efficiency gains. Netmargin to average assets was 3.57% as of Dec. 31, compared to a4.40% peer average.

Michael Bondanza, CEO of the $31 million St. Joseph's ParishBuffalo FCU, weathered another storm – the recession – byspecializing in loans for grown-up toys such as boats, campers andATVs.

This small Buffalo, N.Y.-based credit union has about 4,000members and one branch. However, it bucked the struggling smallcredit union trend by reporting a 2012 year-end ROAA of 1.87 and34.21% loan growth.

That's a lot of campers.

“What we have done here at SJP is create a lending culture and aloan product, with an easy application process, streamlinedelectronic closing, and expedited funding mechanisms for area boat,recreational, and RV dealers,” Bondanza said. “Even though theeconomic recovery has been slow, people that are working have theirdowntime and want to have fun.”

On the southeastern shore of Lake Ontario, the $50 millionOswego County FCU of Oswego, N.Y. boasts a positive ROAA at1.29%, much better than its peers who averaged 0.49%. What isOCFCU's secret?

“Our ROAA is product of number of factors,” said CEO BillCarhart. “Foremost, our loan to share ratio is 86%. Compare that toour peer LTS ratio of 60% and that gives us an increasedopportunity to invest our excess shares into loans to our membersand not into investment vehicles that yield a substantially lowerrate of return.”

Carhart said that approving loans makes members more inclined toincrease their products. One popular product is a checking accountthat pays a remarkable 3.25% return.

“One of the main reasons (for consistent loan growth) is that wefind a way to yes,” Carhart said. “My lenders strive to make asmany loans as they can. We also operate in a blue collarcommunity where members live paycheck to paycheck and sometimes runinto difficulties. With local banks in the area only lending to Aand B consumers, we are more than happy to assist members who mayhave hit one of life's roadblocks and missed a payment or two.”

Hurricane Sandy also wreaked havoc on the Hudson River Valleywhere the $174 million Hudson River Community Credit Union islocated. However, six months later the Corinth, N.Y., institutionis profitable with an ROAA at 1.01% as of Dec. 31.

“The primary reason is a stronger margin driven by strongloan-to-share ratio of 82%, which is 24% stronger than peer,combined with strong fee income,” said CEO Sue Commanda. “Otherfactors include operating efficiencies realized by staff crossselling, process automation and strong member loyalty.”

Twelve-month loan growth was 4.56% as of Dec. 31. Commanda saidthe credit union decreased loan rates to boost loan growth;however, despite the drop in rates, Hudson River Community stillbested peer average in net interest margin, reporting a 6.13%average loan yield, compared to 5.70% peer averages. A slightlyhigher than peer cost of funds ratio was offset by a slightlyhigher than peer investment yield and a robust fee income ratio of2.19% of average assets.

The CEO said 48% of the credit union's field of membership earnsmoderate to low incomes, and four of Hudson River Community's fivebranches are located in low-income census tracts.

“We serve this demographic well,” Commanda said. “And we arefortunate to be in an area that has good economic activity andanticipate a good 2013 as a result.”