I wanted to provide an update concerning the National Credit Union Administration’s (NCUA) corporate credit union stabilization plan.
The NCUA has analyzed the financial positions of all 27 corporate credit unions. They felt that further action needed to be taken to stabilize the corporate credit union structure. Two of the 27 corporates, U.S. Central Federal Credit Union and Western Corporation (WesCorp.), were determined to have higher-than-expected loss estimates. In late March, they were both taken into conservatorship by NCUA, meaning NCUA took direct control and supervision of both institutions to maintain the confidence of member credit unions given the expected impairment of assets and credit rating downgrades. Both corporate credit unions are now being operated by new CEOs and Boards of Directors appointed by the NCUA. U.S. Central and WesCorp both opened for business as usual on Monday, March 23rd with no interruption in service to their member credit unions.
Although Gulf States CU does not have any deposits or investments with either U.S. Central or WesCorp, we are members of and utilize services offered by Southeast Corporate FCU headquartered in Tallahassee. The NCUA's analysis indicated the portfolio risk at Southeast Corporate is manageable. Southeast Corporate has pledged to continue serving its member credit unions, including Gulf States, with an ongoing commitment to safety and quality.
You can have peace of mind knowing that:
Gulf States Credit Union's capital ratio is over 14%. A credit union is considered adequately capitalized if their ratio is 7%.
Gulf States deposits are insured to at least $250,000 and are backed by the full faith and credit of the United States government. No one has ever lost a penny of federally insured deposits in any credit union.
Gulf States has never been involved in sub-prime mortgage lending practices.
Gulf States is highly rated by some of the most respected financial rating companies in the country. BauerFinancial has rated us a 5 star institution, the highest rating you can earn.
It is of the utmost importance to keep our members informed about what is occurring in the industry. I will continue to update the membership as news becomes available.
Sincerely,
Gary E. Teramae
President / CEO
STATEMENT OF FINANCIAL CONDITION
PERIOD ENDING February 28, 2010
ASSETS
Regular Loans
$
7,252,652
Leases
- - -
Educational Loans
1,609
Real Estate Loans
2,983,142
Commercial Real Estate Loans
938,400
ODP Loans
4,547
Visa Loans
642,453
Loans In Liquidation
- - -
Total Loans
11,822,802
Allowance For Loan Loss
(74,830)
Allowance For ODP
(5,865)
Net Loans
11,742,107
Cash On Hand
516,515
US Government Obligations
- - -
Federal Agency Securities
- - -
Other Certificates
7,697,990
Other Investments
22,061
Certificates In Corp CU
100,000
Shares In Corp CU
2,543,714
Total Cash / Investments
10,880,280
Land 9405 S. Highway 17-92
458,000
Building (NET)
342,828
Furniture & Equipment (NET)
23,868
Accounts Receivable
174,512
Prepaid / Deferred Expense
42,897
Accrued Income
61,765
NCUA Share Insurance Fund
166,152
Assets Acquired In Liq / Loan
34,000
Other Assets
42,316
Total Other Assets
1,346,338
Total Assets
23,968,725
LIABILITIES / EQUITY
Accounts Payable
$
6,317
Accrued Dividends Payable
- - -
NCUSIF Stabilization
- - -
Other Liabilities
55,650
Notes & Interest Payable
- - -
Total Liabilities
61,966
Share Accounts
7,188,793
Checking Accounts
3,239,238
Club Accounts
106,891
Escrow Deposit Accounts
32,459
Money Market Accounts
3,478,019
IRA Share Accounts
433,704
HSA Share Accounts
280,155
Certificates - IRA
2,089,323
Certificates 3-6 Months
595,560
Certificates 12 Months
1,559,148
Certificates over 12 Months
1,260,039
Total Member Savings
20,263,328
Reserves
702,342
Undivided Earnings
2,938,526
Net Income (Loss)
2,564
Total Capital / Equity
3,643,431
Total Liabilities / Equity
23,968,725
CONTINGENT LIABILITIES
VISA
942,205
Home Equity (350)
127,802
Unsecured LOC (10)
44,680
Total
1,114,687
Capital
15.20%
home equity - as low as 7.0%
heloc - 1% over Prime
