Alliant First Quarter 2009 Financial Performance
May 04, 2009 | David W. Mooney, President & CEO
Given the current economic conditions, I want to update you on Alliant Credit Union's performance so that we may continue to earn your trust as a safe and secure place for saving and borrowing.
Last month, I communicated to you that the National Credit Union Association (NCUA), a U.S. government agency, implemented the Corporate Credit Union Stabilization Program to address losses from "Corporate" credit unions, which provide wholesale services to "retail" credit unions, such as Alliant. The NCUA covered the anticipated "Corporate" credit union losses through the National Credit Union Share Insurance Fund (NCUSIF). This action required all federally insured credit unions, such as Alliant, to recapitalize the fund back to its starting position. This special assessment will result in an expense for all federally insured credit unions, proportionate to their total deposits. The current year assessment will depend on pending legislation to spread the cost over several years, but the total cost to Alliant is estimated to be approximately $38 million. While this is a significant charge (which we recognized in our March, 2009 financials), Alliant is able to absorb the whole expense without impact on members, while maintaining a strong balance sheet. Evidence of our continued growth: during the first quarter of 2009, our membership grew by 8%, our deposits grew by 19% and our loan balances grew by 14%.
Continuing through the end of 2009, we are forecasting positive net income and anticipate maintaining our positive net worth ratio in excess of regulators' benchmark of a "well-capitalized" financial institution.
In summary, Alliant continues to grow despite the economic conditions because of our prudent expense control, strong capital reserve balances and conservative investment practices. Meanwhile, your funds on deposit with Alliant remain federally insured to at least $250,000 and backed by the full faith and credit of the United States government by the National Credit Union Administration a U.S. government agency.
I am hopeful our financial transparency and stability is worthy of your continued trust.
David W. Mooney
President & CEO
Alliant Credit Union
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