Florida Land Mess Highlights CU Losses

FORT MYERS, Fla. – Huron River Area CU, the Michigan credit union caught in the middle of Florida real estate speculation, had the distinction of being the biggest loser among credit unions in the first half of the year, wracking up almost $59 million in losses, according to data obtained from 5300 Call Reports submitted to NCUA. Three other credit unions caught in the expanding speculative mess also reported significant first half losses, including Norlarco CU ($5.2 million), New Horizons Community CU ($900,000) and Superior Choice CU, a Wisconsin credit union stuck with a participation in one of the Florida loan pools ($1.1 million). Fifteen credit unions lost more than $1 million in the first half, including Cal State 9 CU ($9.1 million), Alco CU ($6 million), Credit Union of Texas ($5.5 million), Obelisk FCU ($5.2 million), Capital Community FCU ($4.8 million), Capital Power FCU ($4.5 million) and Peoples First Choice FCU ($3.1 million). NCUA has taken over and is running three of the biggest losers (Huron River Area, Norlarco and Peoples Choice) under conservatorships, and two more, Obelisk and New Horizons Community, was sold off to other credit unions.