Tell Your Members the Good News

FirstLook reflects a stabilizing economy, financial regulation protects consumers, and the NCUSIF is outperforming expectations.


Second quarter financial performance data is rolling in. According to Callahan & Associates FirstLook program, preliminary numbers suggests improvements in the financial industry. With more than 40% of the industry reporting (both by numbers and assets), Callahan analyst Lydia Cole highlights two positive trends in asset quality and earnings, both are trends that reflect a stabilizing national economy.

Congress returns to Washington this week to continue debating the ins and outs of lingering financial reforms. The future is uncertain for several items, namely the proposed bump in the credit union member business lending cap and the final iteration of interchange limitations. At its heart, financial reform like the Dodd-Frank Act is intended to protect consumers from the polices of irresponsible financial institutions, yet your members are likely unaware of how these changes will benefit them. So this week on, Chip Filson urges you to talk to your members about the positive aspects of financial reform.

Good news, after all, is out there. NCUA’s June report on the NCUSIF brought better-than-anticipated figures. The fund continues to outperform expectations, with year-to-date losses $56 million below what the agency budgeted. In addition, a smaller percentage of insured shares are in CAMEL 4 or 5 credit unions at the end of June (5.69%) versus the end of May (6.23%). As the entities that fund the NCUSIF, as well as other funds and assets overseen by the regulator, it is imperative credit unions remain cognizant of how their resources are handled. In this week’s CUtv Short, Filson offers ideas on how credit unions can play a more active role in providing oversight for these industry resources.


Aug. 2, 2010



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