December 10, 2002

Office of Financial and Insurance Services (OFIS) Commissioner Frank M. Fitzgerald today released an overview of the third quarter financial results of the 280 Michigan state-chartered credit unions.

“Michigan’s 280 state-chartered credit unions are in sound financial condition,” said Fitzgerald. “However, the financial stresses evident in the September 2002 statistics highlight the continuing need for sound management practices by credit union officers and board members in an uncertain economic environment.”

Positive factors identified during the third quarter include a 1% growth in credit union membership, a 5.3% increase in total assets, and a strong 1.8% growth in loans.

Areas of concern include weak earnings results, a continuing weakness in investment return, and a decrease in annualized asset growth rate compared with the first half of 2002.

Additional information can be found on the OFIS web site at http://www.michigan.gov/cis/0,1607,7-154-10555_12900_13354---,00.html.

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The Michigan Office of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 29 HMOs, 138 banks, 280 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available online at the OFIS web site, www.michigan.gov/ofis, or at the Michigan government home page, www.michigan.gov. All information is also available through the OFIS toll free number, (877) 999-6442. If you would like to receive OFIS press releases electronically, please email ofis-info@michigan.gov.