NASHVILLE, Tenn. (2/4/13)--The Volunteer Corporate CU Friday released its unaudited financial results for the year ended Dec. 31, noting that while strong, the results were impacted by last year's merger with West Virginia Corporate CU.
"VolCorp's financial condition remained strong. VolCorp continued to fulfill its mission by providing favorably priced services to its member credit unions while paying a competitive dividend to its member/owners," said the corporate in a press release. It experienced declines in net income, return on average assets, assets, and net unrealized losses.
Net income for 2012 totaled $2.1 million, with a return on average assets (ROA) of 0.15%. Both are down from 2011's $2.6 million and ROA of 0.22%.
"The most significant contributor to the decrease in net income for 2012 was non-recurring charges related to the merger with West Virginia Corporate CU," said VolCorp's press release.
The National Credit Union Administration approved the merger of the two corporates in a closed board meeting on Jan. 26, 2012 (News Now
Feb. 2, 2012).
Other results from the report:
- Member/owners were paid cash dividends totaling $597,526, representing a 28% payout of VolCorp's net income and a 1% return on their perpetual contributed capital.
- Assets on Dec. 31 totaled $1.18 billion, a 3% or $33 million decrease from year-end 2011, said VolCorp. Total assets for the year averaged $1.32 billion, an increase of $103 million, or 8% from 2011.
- Capital adequacy continued to significantly exceed all minimum regulatory requirements, VolCorp said. Total capital, which included $9.3 million in total retained earnings, stood on Dec. 31 at $70.4 million or 5.33% of total assets.
- Net unrealized losses on securities totaled $183,348--a decline of 91% or $1.966 million from year-end 2011.