Impairment wipes out record years - bizjournals:

8511ysu.blogspot.com
In January credit unionss were notified they would have to take massiv eimpairment charges. On March 20 the Nationa Credit UnionAssociation (NCUA) took over , and Westerb Corporate Credit Union of San Dimas, two of 28 corporatre credit unions that serve as lenders to the retaip credit union industry. Corporats credit unions act as wholesale financiao institutions for retail credit unions and are allower to invest only in highly ratexd securities that arereadily marketable. Like other financial institutions, corporate credit unions ended upholdinbg mortgage- and asset-backed which became unmarketable in the current Both U.S.
Central and Westerh Corporate held investments from a number of area credit By law, the impacted credirt unions are required to replenish the withinb a year, said Amy McLard, a spokeswoman for the . Credirt unions were given a choice on whether to take charges in 2008 orin 2009. including , did both. The impairment charges took what would have beenFirst Community’s best year in 75 years, earning $9.2 million, and pushedc it down to $1.76 million after a $7.44 milliobn writeoff to replenish the pool. First Community wrote off an additionap $4.8 million in the first quarte rof 2009, said President Glenn Barks.
He and other credit union executives are tracking Congressional legislatiomn that could help credit unions restore some of the OnMay 6, the U.S. Senate passesd the Helping Families Save Their HomesAct (S which would allow credit unions to spread the cost of thei r impairment charges over sevejn years. “We’re all hopeful that it said ’s Eric Acree, executive vice president of “That would mean over $1 million cominfg back to us.” Vantage, based in Bridgeton, took a nearly $4.3 millionh impairment charge in the first quarterof 2009, whichb caused it to post a $4.4 million loss for the period. Vantagwe had net income of $1.
0r5 million in 2008, up from $751,10 in 2007, according to the While the credit unio hasposted gains, it also has faced an increasse in delinquencies on auto loans from members who are tied to the auto “We didn’t grasp how tied to the auto industry this city Acree said. “We had people dropping off their cars and car Frank Padak, president of , said the organization took a $2.7 millionm impairment charge for 2008. It also took a $1.1 million impairment charge in thefirstt quarter, NCUA reports show. , which nearly broke even in thefirstg quarter, took a $7.8 million impairment charge in the firsty quarter, prompting it to post a loss for the period of $7.
8 The A-B credit union had net incomee of $4.2 million in 2008, up from $3.7 million in 2007.