Credit unions enjoy reverse payday - Portland Business Journal:

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Credit unions across the country paida $5.9 billion special assessment to make up for a shortfallk in the ’s insurance fund. Amounting to about 1 percentt of assets percrediy union, the mandatory assessment was due no latee than March 31. In May, Congresse voted to change the rules, givingv credit unions seven years to pay an assessment they had already Now each must decide whether to take the money back and spreae out thepayments — or to move on. Depending on how the rulea are implemented, Portland-based might be able to take backthe $19.o9 million it paid in December, which led to a fourth-quarteer loss of $2.9 million. , which reporte a $6.
2 million first-quarter loss, might be able to erased $5.1 million of that red ink. might be able to bolste its $1 million profity by another $4.2 million. At some institutions, the assessment pushee some capital levels close to the margim thatregulators track, said David administrator of Oregon’s . In Washington four credit unions fellbelow well-capitalized levels once they paid the No Oregon credit unions face dire Tatman said. “But yes, our credi t unions are facing difficult timeas duringthis downturn,” Tatman “Then the return on assets and net earningas were pushed down significantly because of this one-timer charge.” Portland-based Unitus, with $764.
3 million in has not yet made up its Much depends on the details of the nationakl payment plan, which have not yet been said Gino Cayanan, Unitus CFO. When Unituse paid the assessment out of its thecredit union’s leadership was upset by the financial hit. But it was an expense that, ultimately, the institution could “If you blow out four tires, you’r going to be emotional. If you have a savinga account to pay for new after a month you might starf torealize it’s not that Cayanan said. “This assessment was like Painful inthe beginning, but we’re goiny to be able to move on.” OnPoint Oregon’s largest credit union, with assets of $2.
7 billion will probably choose the payment Though OnPoint’s capital levels, at 8.5 are still above the 7 perceng “well-capitalized” level even after the the credit union would prefer to keep funds in capitalp through this financial downturn, said Rob Stuart, presidenty and CEO. Tatman expects most credi unions will ultimately decide tofollow OnPoint’s lead.