Red Ink Spreads Throughout The Credit Union Movement

Credit Union Journal | Monday, April 20, 2009

ALEXANDRIA, Va. – NCUA's corporate assessment was booked by most credit unions in the first quarter of 2009, and its effect can be seen in the March 30 call report data, with many credit unions reporting losses as a result.

Losses that had been focused largely on the so-called Sand States of California, Arizona, Nevada and Florida for the past two years moved through most of the credit union movement in the first quarter, with hundreds of credit unions reporting losses for the first time ever.

From Connecticut, where American Eagle FCU reported a first quarter loss of $8.5 million; to New Jersey where Polish & Slavic FCU had a $9.6 million loss; to Georgia where Atlanta Postal FCU had a $11.1 million loss; to Minnesota where Wings FCU wracked up an $8.7 million loss; Tennessee where Eastman CU’s losses were $9.7 million; and North Carolina where Coastal FCU reported a staggering $26.3 million in red ink for the first quarter, the first quarter appears to have succeeded last year’s fourth quarter as the worst ever for credit unions.

Losses were appearing all over the country where they never were before. Westerra CU in Colorado had a $6 million loss; Del-One FCU in Delaware a $1.9 million loss; Evansville FCU in Indiana $4.6 million in red ink; Campus FCU in Louisiana negative $2.3 million; Maine State FCU a $1.7 million loss; Hudson Valley FCU in New York minus $16.4 million; Advantis FCU in Oregon negative $5.3 million; Unitus FCU in Oregon a $6.2 million loss; New England FCU in Vermont minus $2.3 million; Anheuser-Busch Employees FCU in Missouri a loss of $7.8 million; and all the way to Alaska, where Credit Union One reported a $3.9 million loss for the first quarter.

Meantime, credit unions in the Sand States continued to get battered during the quarter. In California: California CU reported a $25.3 million loss; Mission CU a $4.2 million loss; Contra Costa FCU an $8.7 million loss; Alliance CU minus $4.8 million; Kern FCU negative $8.2 million and High Desert FCU a loss of $12.9 million.

In Arizona; Deer Valley FCU minus $3.1 million; Hughes FCU negative $3.7 million; Pima FCU minus $2.4 million and Sunwest FCU negative $1.8 million.