The recent spate of bank failures seems to be "taken in stride" by the public with no current evidence of CUs gaining substantial new business, the president/CEO of the $7 billion Alliant Credit Union of Chicago said Monday.
However, the deposit inflow into Illinois CUs as a result of consumer alarm over bank safety did occur last year and early in 2009 "and of course when the TV showed lines of people in front of IndyMac," said David Mooney, the president/CEO of Alliant referring to the July 2008 failure of IndyMac Savings Bank in California.
For now, said Mooney, Illinois consumers like those elsewhere "are conditioned to such failures as regulators handle the transition rather smoothly."
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As for CU troubles in the "sand" states, Mooney said Alliant with a 9 1/2% capital ratio, has been periodically contacted by NCUA about becoming a bidder following its purchase/assumption of an Oakland, Calif. CU, Kaiperm FCU a year ago. That merger, he said, helped foster some new California SEG business for Alliant including the health insurer, Kaiser Permanente.
On Illinois bank failures including that of Corus Bank, which had a high volume of faulty construction loans, Mooney said Alliant's concentration is "not such so much on Illinois where we do have our headquarters but it is targeted nationally and in California." Alliant is the successor to United Airlines Employees CU.
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