ALEXANDRIA, Va. – Dozens of credit unions that reported large losses last year appear to have turned the corner, but others are reporting big losses for the first quarter of 2008.
Falling into the red for the first quarter were: Arizona CU went from a $9.2 million net for 2007 to a $12.8 million loss for the first quarter; GTE FCU, went from a $3.2 million net for 2007 to a $8.2 million loss for the first quarter; Suncoast Schools FCU from a $1.9 million net to a $6.4 million loss for the first quarter; Kern Schools FCU, from $3 million net to a $4.8 million loss; Kinecta FCU from $11.9 million net to $3 million loss; and North Island CU, from $9 million net to a whopping $13.6 million loss for the first quarter.
Other big first quarter losses: Wescom CU ($7.8 million); Eastern Financial Florida CU ($5.5 million); American First FCU ($2.2 million); Capital Community CU ($2.3 million); Kaiperm FCU ($2.1 million); Metro CU ($1.8 million); Heritage Community FCU ($1.5 million); Alliance FCU ($1.3 million); and Texans CU ($1.1 million).
Bucky Sebastian, president of GTE FCU, attributed his credit union’s $8.2 million first quarter loss to the deteriorating real estate market in Florida’s Gulf Coast, forcing him to move millions of additional dollars in loan loss reserves. “You know, the rest of the country may be in a recession, but we’re in a depression,” Sebastian told The Credit Union Journal yesterday. He said the crash in the housing market has had a broad effect on allied industries, digging deep into his members' pockets.
One of last year’s biggest losers, Cal State 9 CU, which was taken over by regulators and is being run under conservatorship, wracked up another huge loss for the first quarter: $53.3 million, following a loss of $61.6 million last year.
Some of last year’s losers broke back into the black for the quarter. Allco CU eked out a $42,000 net after a $5.9 million loss for 2007; USA FCU, squeezed out a $34,900 net after a $5.8 million loss last year; Allegacy FCU reported a $1.2 million net after losing $7.6 million for 2007; Centris FCU had a $486,000 net for the quarter after a $6.1 million loss for 2007; Denali Alaskan FCU earned a $3.3 million net after losing $4.3 million last year; and CommunityAmerica CU had a $1.1 million net after a $7.6 million 2007 loss.
