WESTERLY – The Westerly Community Credit Union (WCCU) told its members that 2008 was a good year for the institution despite the economic downturn and a one-time charge for a national plan to rescue “corporate” credit unions.
At the credit union’s March 30 annual meeting, WCCU executives noted that its assets increased 7.37 percent for the year, while deposits increased 8.85 percent, net loans were up 11.30 percent and membership was up 2.31 percent.
WCCU finished the year with $678,291 in net earnings and originated $65.72 million in loans for 2008, executive said.
Stephen J. White, WCCU president and CEO, told members that the credit union had to pay $1.26 million in 2008 as part of the national plan to rescue larger credit unions.
Payouts were required from all federally insured credit unions across the country after the National Credit Union Administration (NCUA) used its insurance fund to stabilize corporate credit unions as their investments in mortgage-backed securities plummeted in value over the last year.
The charges – which range in amount depending on the size of the credit union – are intended to replenish the insurance fund.
The 28 corporate institutions are a critical part of the credit union system – performing transaction-processing and check-clearing services and providing a place for the smaller institution to pool extra capital.
“While your board of directors and management are not happy with this situation, please be assured that even after absorbing these federally required additional costs, WCCU, with a year-end net worth of 8.63 percent, will still maintain its regulatory well-capitalized rating,” White said. “The credit union will continue to conduct business as usual; your money is safe, secure and still federally insured up to $250,000.”
The credit union also highlighted several accomplishments in 2008, including the opening of a fourth branch, this one in South Kingstown in October. By year end, that office had $3.5 million in deposits and had originated $464,000 in loans.
WCCU said it also redesigned its Web site and upgraded its electronic banking services last year. The credit union said those improvements will continue this year with the focus being on helping small business members. WCCU said it will add a remote deposit capture program and a mobile banking feature this year.
Westerly Community Credit Union, founded in 1948 by 23 initial members, has grown into a $193 million financial institution with more than 15,000 members. It has two branches in Westerly, one in Richmond and a fourth branch, in South Kingstown. To learn more, visit www.WesterlyCCU.com.
