X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The NCUA convinced most of the corporates that originally rejected its Temporary Corporate Credit Union Share Guarantee Program to give it a second chance. Only two wholesale institutions will not participate: the $96 million Iowa Corporate Central Credit Union and the $4.3 million LICU Corporate Federal Credit Union.Iowa Corporate Board Chair Roger Reiser said participating in the share guarantee “didn’t provide much value to our membership” because Iowa Corporate is “very well-capitalized, I think the best in the country.” Per Iowa Corporate’s first-quarter 2009 5310 report, its net worth ratio is 22.44%, with a 14.21% retained earnings ratio.Reiser, who is president/CEO of the $250 million Des Moines-based Community Choice Credit Union, said not one member questioned the move, adding, “We have very good support, and quite a few members have commented that they trust the board to make right decision.”LICU Corporate differs from other corporates in that its primary function is to provide payroll clearing services for former IBM credit unions, said Chair Frank Berrish, president/CEO of the $2.2 billion Visions Federal Credit Union. As such, he said, the corporate share guarantee “really did not pertain to us.”“We have less than $5 million is assets and no investments at US Central. We have no member capital shares and are used by our members only for clearing payrolls, as most member balances are under $250,000,” Berrish said.The Endicott, N.Y.-based corporate reported a 33.0% net worth ratio and retained earnings ratio on its first-quarter 2009 5310 report.–[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.