LENEXA, Kan. – U.S. Central's third-quarter numbers reflect some of the bigger trends in the industry. The corporates' corporate reported that assets as of Sept. 30 were $34.9 billion, down from $36.6 billion last year. U.S. Central's loans to members reached a record $2.5 billion in the third quarter. It attributed that to increased liquidity and modifications to loan products to hedge against rising interest rates. Lending in the industry as a whole has been gaining steam after a few down years. Mortgage lending particularly has remained solid. U.S. Central's Charlie Mac subsidiary allows credit unions to sell off jumbo mortgages as well as auto loans. In the second quarter Charlie Mac purchased more than $158 million worth of these loans, for a total of $260 million during the first half of the year. This reflects credit unions' willingness to sell off mortgages to guard against interest rate risk that could build if rates continue to rise. U.S. Central saw its net income decline $8.2 million year-to-date over the same period last year. One factor there is operating expenses, which were up to $29.3 million, over $24.4 million for the same period last year. Data processing expenses were up by a million dollars; outside consulting services were up $1.6 million; and travel and entertainment expenses were up $400,000 due to costs surrounding U.S. Central's 30th anniversary meeting. Salaries and benefits at U.S. Central also jumped by $1.3 million. Operating expenses were also up due to higher commissions from U.S. Central's ISI Corporate Agent Program. ISI allows credit unions to sell market securities to members. ISI partners with a corporate CU that markets ISI's services to credit unions. Currently 13 corporates offer ISI investment services. Fee income totaled $9.7 million through June 30, which was up $1.2 million over last year. U.S. Central cited more activity from ISI as well as from its payment products, primarily an increase in APEX-ACH transactions, as reasons for the increase. Fee income from its Corporate Network eCom subsidiary was up by $600,000. Combined dividends on Membership Capital Shares and paid-in-capital totaled $11.4 million as of June 30, compared with $11 million last year. As is the norm, U.S. Central is very liquid. As of June 30 it held $4.4 billion in overnight funds and $29 billion in marketable securities. Regulatory capital at U.S. central was 6.2% as of June 30. It is required by NCUA to maintain a regulatory capital ratio of 4%, but has elected to maintain 5%, in "exchange for greater allowable sensitivity of net economic value to stress testing scenarios." [email protected]