WEST ALLIS, Wis. – Losses on its mortgage portfolio continue to hurt Allco CU, which reported a first quarter loss of $5.2 million. Rising delinquencies and charge-offs in its mortgage portfolio contributed a large part of the first quarter loss. Officials with the $75 million credit union said last week they are working with NCUA and state regulators on a recovery plan. Earlier this year, Allco’s President Ralph Brunner resigned and was replaced by industry consultant Chris Dawe, on an interim basis. According to the credit union’s first quarter Call Report, Allco had $5.2 million in delinquent loans, $3.1 million of it in mortgages. The credit union has added $5.5 million to its allowance for loan losses to cover potential charge-offs.
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