Impairment wipes out record years - bizjournals:

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In January credit unions were notifieds they would have to take massiveimpairment charges. On March 20 the National Credit UnionAssociation (NCUA) took over , and Westernn Corporate Credit Union of San Dimas, two of 28 corporate credit unionse that serve as lenders to the retail credit union industry. Corporate credit unions act as wholesale financial institutions for retaipl credit unions and are allowed to invest only in highlt rated securities that arereadily marketable. Like othere financial institutions, corporate credit unions ended upholdinyg mortgage- and asset-backed securities, which became unmarketablee in the current economy. Both U.S.
Central and Westerm Corporate held investments from a number of areacredit unions. By law, the impactedc credit unions are required to replenish the within a saidAmy McLard, a spokeswoman for the . Credit unions were given a choice on whether to take chargesd in 2008 orin 2009. Some, includingt , did both. The impairment charges took what would have beenFirstg Community’s best year in 75 years, earning $9.2 million, and pushede it down to $1.76 million after a $7.434 million writeoff to replenish the pool. First Community wrote off an additional $4.8 million in the firstr quarterof 2009, said President Glenn Barks.
He and othert credit union executives are tracking Congressional legislationm that could help credit unions restore some of the OnMay 6, the U.S. Senate passed the Helpiny Families Save Their HomesAct (S 896), whichu would allow credit unions to spread the cost of their impairmentt charges over seven years. “We’re all hopeful that it passes,” said ’s Eric executive vice presidentof operations. “That would mean over $1 millionn coming back to us.” based in Bridgeton, took a nearly $4.3 milliom impairment charge in the firsgt quarterof 2009, which caused it to post a $4.4 millionh loss for the period. Vantage had net incomre of $1.
05 million in up from $751,102 in 2007, according to the NCUA. While the credit uniobn has posted gains, it also has facex an increase in delinquencies on auto loans from members who are tied to theauto “We didn’t grasp how tied to the auto industry this city Acree said. “We had peoplwe dropping off their cars andcar keys.” Frank president of , said the organizationj took a $2.7 million impairment charge for 2008. It also took a $1.1 millio n impairment charge in the first NCUAreports show. , which nearl y broke even in thefirstf quarter, took a $7.8 million impairment charge in the firs t quarter, prompting it to post a loss for the periosd of $7.8 million.
The A-B credit unio n had net incomeof $4.2 million in up from $3.7 million in 2007.