PHOENIX – More large credit unions are reporting big losses for the third quarter, especially in the nation’s most troubled real estate markets.
In Arizona, Arizona FCU reported another $8.9 million loses for the third quarter, bringing its year-to-date losses to $51.4 million; Arizona Central CU had a $900,000 loss for the quarter and $1.8 million year-to-date; SunWest FCU reported a $1.6 million quarterly loss and a $3.4 million loss year-to-date.
Credit Unions in California continued to report big losses, some for the first time.
SchoolsFirst FCU, the $7.8 billion credit union formerly known as Orange County Teachers FCU, plunged into the red for the first time to the tune of $28.7 million for the third quarter.
Arrowhead Central CU also fell into the red for the first time, with a $6.6 million third quarter loss.
Also, Wescom Central CU reported a $21.6 million loss for the third quarter and a $32.5 million loss for the first three quarters; Kern Schools FCU had a $9.3 million loss for the third quarter and a $15 million loss for the first three quarters; Visterra CU reported a $1.2 million loss for the quarter and a $7.9 million loss for the year; California Coast CU had a $4.3 million quarterly loss, creating a $6.7 million loss for the first nine months; Valley FCU had a $3.1 million third quarter loss and a $8.9 million loss for the first nine months.
Daniel Penrod, a research analyst for the California CU League, said credit unions in California and Nevada continue to suffer from the real estate bust. "While credit unions are not part of the disease, they’re definitely dealing with the symptoms," said Penrod, who said home prices continue to decline. "I see this trend continuing through the end of the year and into next year, before it finds an equilibrium."
"The areas that are seeing the largest negative impact are those that saw the highest positive impact during the boom," he told The Credit Union Journal, citing the California, Las Vegas, Florida and Arizona markets.
In Nevada, Clearstar Financial FCU in Reno had a $3 million loss for the third quarter and a $4.6 million loss year-to-date; Community One Financial FCU in Las Vegas a $600,000 quarterly loss and $1.8 million year-to-date.
In Florida, GTE FCU, reported a $2.7 million third quarter loss, creating a $21.9 million loss for the first three quarters; Jax FCU, reported a $3.4 million in red ink for the quarter and a $5.5 million three-quarter loss.
Other large credit unions around the country are also reporting big losses this week.
Allegacy FCU in North Carolina, reported a $1.8 million loss for the third quarter and a $13.4 million loss for the year-to-date; Centris FCU, Nebraska’s largest credit union, fell back into the red for the quarter with a $6.9 million loss, bringing yera-to-date losses to $6.4 million; Pocatello Railroad Employees FCU in Idaho reported a $300,000 loss for the quarter and $725,000 loss for the year; Credit Union of Texas reported a $400,000 loss for the quarter and a $2 million loss year-to-date; Sunmark FCU in Schenectady, N.Y., a $2 million third quarter loss and $8.2 million loss for the first three quarters; Alabama Central CU a $610,000 loss for the quarter and $1.3 million for the year; United San Antonio Community FCU a $300,000 loss for the quarter and $1.4 million loss year-to-date.
