NAFCU Shows Net Profit in 2002; Dues Freeze Still in Place

ARLINGTON-NAFCU started 2003 off in the black, according to the organization’s recently released annual report. NAFCU’s operating expenses reached nearly $2.5 million in 2002, up slightly from $2.2 million the previous year. Additionally, the trade association’s “changes in net assets” totaled $775,993. According to NAFCU Director of Research and Analysis Tun Wai, NAFCU’s annual report does not have specific net income or expense line items in it because of the accounting method used, which divides out unrestricted and temporarily restricted net assets, so the numbers are not directly equivalent to net income and expenses. NAFCU’s total assets reached $10,635,171 for 2002, up from $10,312,558 in 2001, the report read. Liabilities for 2002 totaled more than $4.6 million, down from nearly $5.1 million the previous year. While NAFCU’s membership numbers fell from 901 at year-end 2001 to 853 by the same time in 2002, NAFCU Director of Member Services Lauren Corbin said, membership dues revenue fell only $67,000, despite the two-year-long dues freeze NAFCU has in place. The dues freeze was instituted in recognition of the current, temporary influx of funds at credit unions that has inflated their assets, she explained. NAFCU achieved a 93% membership retention rate last year, she added, and so far in 2003 has maintained 96%. Corbin said the bulk of the membership revenue losses were due to mergers. Additionally, NAFCU’s revenue from products and services dropped nearly $10,000, while investment income was nearly cut in half. Most other categories were up, including member educational conferences (up over $300,000) and service fees, which climbed $200,000. The trade association also took some cost cutting measures by reducing communications and publications spending by $28,000, cutting products and services spending nearly in half, and spending $42,000 less on officials and committees. On the other hand, NAFCU’s legislative, regulatory and compliance functions spent $252,560 in 2002, up nearly $53,000 from $199,724 in 2001. -