More large credit unions are reporting big losses for the third quarter, especially in the nation's most troubled real estate markets.
The $1.9 billion-asset Arizona Federal Credit Union in Phoenix reported an $8.9 million loss last week, bringing its losses so far this year to $51.4 million. Arizona Central Credit Union reported a $900,000 loss for the quarter, bringing its losses so far this year to $1.8 million. SunWest Federal Credit Union reported a $1.6 million loss for the quarter; this year it has lost $3.4 million.
Credit unions in California also reported big losses, some for the first time ever. The $7.8 billion-asset SchoolsFirst Federal Credit Union in Santa Ana, formerly known as Orange County Teachers Federal Credit Union, plunged into the red for the first time in its 23-year history, reporting a loss of $28.7 million. The $1 billion-asset Arrowhead Central Credit Union in San Bernardino also reported its first loss, $6.6 million.
Daniel Penrod, a research analyst for the California Credit Union League, said credit unions suffering the most are those in areas where home prices have fallen fastest.
"The areas that are seeing the largest negative impact are those that saw the highest positive impact during the boom," he said, including California, Las Vegas, Florida, and Arizona. "I see this trend continuing through the end of the year and into next year, before it finds an equilibrium."
The $167 million-asset Clearstar Financial Federal Credit Union in Reno lost $3 million in the third quarter, and the $161 million-asset Community One Financial Federal Credit Union in Las Vegas lost $600,000.
The $6 billion-asset Suncoast Schools Federal Credit Union, the largest in Florida, said last week that it moved another $23.6 million to its allowance for loan losses in the third quarter to cover poorly performing mortgages. As a result, it reported a third-quarter loss of $25.7 million; this year it has lost $51.9 million.
The $2.2 billion-asset GTE Federal Credit Union in Tampa reported a $2.7 million third-quarter loss; this year it has lost $21.9 million.
