X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The negative impact of the economy on its investments caused CUNA to have to write off almost $8 million last year.The diminishing value of the association’s investments and the losses in its benefit plan caused the association to have a change in its restricted net assets of $7.9 million. In 2007, the association lost $5.2 million.The consolidated numbers, which include CUNA and CUNA Strategic Services’ financials, don’t include what CUNA will have to write off as part of the value of its $940,986 share in U.S. Central Federal Credit Union as a result of its conservatorship.CUNA had $2.6 million in unrestricted assets at the end of 2008, compared with $10.6 million at the end of 2007. Its pretax income last year was $887,173, compared with $3.2 million in 2007.The association’s one financial bright spot was a positive operating margin of $221,000.Earlier this year, when the association realized the extent of its financial difficulties, CUNA laid off eight employees and eliminated merit increases for senior staff members. It also is continuing a selective hiring freeze that began last year.The trade association has a $56 million annual budget and 260 full-time-equivalent employees.CUNA Senior Vice President/Chief Financial Officer Joanne Duncan said the group is looking to cut additional expenses and hope to receive a boost if the forecasts for an economic recovery for later this year are correct.“We are evaluating a number of different things and everything is on the table, including conferences and operational expenses,” she told Credit Union Times. “We are not any worse off than many other trade associations.”Duncan said they have increased the use of teleconferences and Internet meetings to save money and noted that the association’s finance committee will be holding several meetings via conference call rather than in person.She also noted that canceling conferences did not always save money because some hotels won’t refund previously made deposits for rooms.NAFCU’s financial picture is healthier. It had a $200,000 increase in the value of its assets last year.NAFCU had $12.9 million in unrestricted assets at the end of 2008, compared with $12.5 million at the end of 2007.The association was hurt by the declining return on its investments, which was $247,964 last year, compared with $395,130 in 2007.NAFCU President/CEO Fred Becker said his group had a good year because it managed expenses carefully, built up a cash reserve and owns its headquarters in Arlington, Va., free and clear.He said conference attendance has “gone well” even though some credit union CEOs have told him they aren’t sending any of their employees to conferences this year. But, he said they are closely watching what effect the corporate credit union stabilization plan will have on the spending patterns of their members.Becker noted that it’s not clear how quickly the projected economic recovery will positively impact NAFCU.“The effects of the economy lag on credit unions and trade associations,” he said.NAFCU has 67 full-time-equivalent employees and an annual budget of $11.5 million. The group had 813 members at the end of 2008, compared with 809 at the end of 2007.NASCUS had $2 million in revenue during the fiscal year that ended last June 30 and $1 million in unrestricted net assets at the end of that period. During the previous fiscal year, the group had $1.9 million in revenues and had $788,697 in unrestricted net assets at the end of the fiscal year.NASCUS President/CEO Mary Martha Fortney said they have been “very prudent with expenses” and expects the group’s fiscal condition for this current fiscal year to show that the association is in “sound financial shape.”She said all state governments are closely monitoring their spending which is why her group is doing more Internet training and teleconferences, though she said, the expected attendance at the group’s annual meeting in August in Boston is “pretty close to what it was last year at this time.”NASCUS has 10 full-time-equivalent employees and a $2 million budget.–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.