For the quarter ended June 30, 2009, the Credit Union posted net income of $13.3 million. These results reflect the restatement of a $7.9 million fee levied by our federal regulator to replenish the Share Insurance Fund and a $2.4 million benefit from a gain on sale of investments. Arizona State Credit Union was among the few credit unions in the state to show positive net income for the period.
We are continuing to experience a high demand for mortgage lending even with the struggling economy. During the first six months of the year, we originated nearly 1,100 first mortgage loans totaling $171 million. During the same period, we financed nearly 1,700 auto loans totaling $25.5 million.
The results of the second quarter are very positive and we are pleased to be among the very few credit unions to post such results. Early in the recession, we recognized the need to be proactive and take steps to prepare for the economic downturn. Others failed to see the signs of a declining economy and now are faced with being told by regulators to take those steps. Fortunately, our proactive plan has left us in a good position.
Among the proactive steps we have taken is a commitment to process improvement. This ongoing program seeks to find ways that we can work smarter, not harder. It allows us to concentrate on higher quality service to our members and improved financial responsibility. This continuing program will provide us with a solid foundation as we look to the future.
As you know, Arizona faces a difficult economy with unemployment nearing 9 percent and housing values remaining unstable. We are committed to meeting the needs of our members and keeping the Credit Union on safe and sound financial footing. While the economy remains a challenge, our current end-of-year projections show another positive year for Arizona State Credit Union.
We are hopeful that signs of stabilization in the economy will continue to take hold. We are closely monitoring the situation and I can assure you that Arizona State Credit Union is safe, strong and secure.
I want to thank you for your support of the Credit Union; it is gratefully appreciated.
David E. Doss
President / CEO