Executive Summary Weekender 10-12 May 2008

By Christian Mullins

Executive Summary:

Riverview FCU has announced that they will merge into Gardiner FCU by the end of the month. Both credit unions are located in Gardiner, Maine, with Gardiner FCU ($17m in assets) about three times the size of Riverview ($5m in assets). Both offices will remain open after the merger.

For the first time in 60 years, the number of credit unions in Pennsylvania has dipped below 600. The number of credit unions reached a high of 1,556 in 1980 and have been declining in number since. On the positive side, most of those lost were due to merger rather than failure, and overall assets for Pennsylvania credit unions is still increasing yearly.

With an increase in energy prices leading to rises in other markets, most notably food, more Americans are turning to credit cards to bridge the price gap. Last Wednesday, the Federal Reserve reported that cumulative credit card balances have risen 6.7% in the first quarter of 2008, to a mind blowing $952.7 billion. Moody’s also reported that credit card delinquency rates have hit a four year high, at 4.53%.

Robbed:

• First Future CU, La Mesa, California, Friday. A man walked into the CU just before 6 pm, told a teller he was armed, and left with an undisclosed amount of cash. No weapon was shown and no one was injured.
• New Horizon CU, Foley, Alabama, Friday. Two men, one armed with a pistol, walked into the credit union and demanded cash. They fled the scene in a CU employee’s car, which was later recovered. It has not yet been determined how much was taken, and no one was injured in the robbery.
• Operating Engineers FCU, Burlingame, California, Friday. A man flashed a handgun, jumped the counter, and fled with an undisclosed amount of cash. No one was injured.
• Mississippi DHS FCU, Jackson, Mississippi, Friday. Two men rushed into the lobby demanding cash. They left with an undisclosed amount of money. One employee fainted but quickly recovered.

Arrested, Arraigned, Charged, or Sentenced:

• Nothing to report today.