This article on the state of the corporate credit
union system was excerpted from page 14 of Callahan's
2002 Credit Union
Financial Yearbook. Graphs were produced using Callahan's
software program - the leading diagnostic tool on corporate
credit unions to evaluate financial performance.
was a year of significant growth of the Corporate Credit
Union Network. However, this phenomenal growth is only
a reflection of corporates continuing to do what they
do best - expertly manage liquidity and provide the
products and services credit unions need. Corporates
continued to maintain strong capital levels. In fact,
their capital (reserves and undivided earnings, paid-in
capital and membership capital shares) grew from $ 4,824,617,817
in November 2000 to $ 5,414,026,827 in November 2001,
an increase of 12.22%. In addition, in the same period
of time, assets ballooned from $56.5 billion to $91.5
billion, a 61.91% increase.
Corporates' strength in the payments arena also continued
to burgeon. Last year, U.S. corporates processed over
one billion items on behalf of their member credit unions.
They transferred over $612 trillion in incoming and
outgoing wires and automated clearinghouse transactions.
They facilitated over $17.1 billion in cash for their
members and they offered over $13.7 billion in approved
credit lines to members. Corporates' strength is their
ability to leverage economies of scale in the areas
of item processing, payments settlement and investments
for credit unions' benefit.
In 2002, corporates will continue to work hard to meet
or exceed the rates paid on agencies and Treasuries.
Many of the products that corporates have structured---either
through US Central or individually ---also meet the
terms and other features of agencies. Callables, amortizing
certificates and bullets are all being marketed in many
corporates at rates equaling or exceeding those of comparable
agencies. As certificates, many of the negatives of
other types of securities are not present (FAS 115,
In addition to the products and services
that corporates have traditionally provided, many of
them now have expanded their offerings to better serve
the nations credit unions. Brokerage service, consulting,
web site design, statement rendering and Internet access
to account and detail data are just a few of the new
corporate solutions for their members. Partnerships
between corporates of all sizes have allowed many services
to be developed in a cooperative, low-cost high-value
method that ultimately saves credit unions real dollars.
Credit unions remain corporates' only focus.