SALT LAKE CITY-Losses are starting to spread to credit unions in an otherwise healthy market, with several Utah credit unions, including the state's second largest, Mountain America CU, which reported a whopping $22.2-million loss for the third quarter.
Coupled with net income of $6 million for the first half of the year, the $2.8-billion credit union reported $22.2 million in losses for the first three quarters of 2008.
Several other large Utah credit unions are reporting big losses. Cypress CU reported a $1-million loss for the third quarter and a $4.5-million loss year-to-date; Southwest Community CU a $1.2-million third quarter loss and $1.4-million loss year-to-date; Utah Central CU a $1.2-million third quarter loss; Family First FCU a $900,000 loss for the quarter; Credit Union 1 a $1.7-million third quarter loss and TransWest CU a $2.3-million third quarter loss and $2.7-million loss year-to-date.
The third quarter losses are significant because until recently, Utah credit unions appeared to have avoided the economic fallout of the mortgage crises.
America First CU, the state's largest credit union with $4.4 billion in assets, reported $8.3 million in third quarter net income and $33.2 million in net income for the first three quarters.
Elsewhere: Direct FCU in Needham, Mass., reported an $8.6-million loss for the third quarter and a $10.5-million loss year-to-date; Summit FCU in Montana reported a $1.9-million loss for the quarter and $3 million in losses year-to-date; and $26-million Channel Islands FCU in Oxnard, Calif., reported a $1.3-million loss for the third quarter.
