Like the other credit unions, the Golden 1, the state’s second largest credit union, cut provisions for loan and lease losses–the amount moved to its allowance for loan losses for the entire year–by two thirds, from $126.2 million to $42.5 million, a sure signal that bad loans have been squeezed out of its balance sheet.
SACRAMENTO – The Golden 1 CU, the nation’s sixth largest credit union, became the latest California credit union to erase losses, reporting today it went from a $23.1 million loss in 2009 to $76.1 million net in 2010, even counting a $15.8 million charge for NCUA assessments.
The news is further evidence that the state’s credit union crisis is waning, with other California giants also moving from the red to the black in recent days.
San Francisco’s Patelco CU went form a $14.6 million 2009 loss to a $24.6 million 2010 net;Kinecta FCU went from a $71.3 million 2009 loss to a $14.6 million 2010 net; Wescom Central CU from a $93.6 million loss to a $2.7 million net; North Island CU from a $52.4 million loss to an $11.4 million net; and Redwood CU from an $11.5 million loss for 2009 to a $6.1 million loss for 2010.
Other Golden State credit unions moving from the red to the black last year were: AltaOne CU, and Schools Financial CU.
Like the other credit unions, the $7.8 billion Golden 1, the state’s second largest credit union, cut provisions for loan and lease losses–the amount moved to its allowance for loan losses for the entire year–by two thirds, from $126.2 million to $42.5 million, a sure signal that bad loans have been squeezed out of its balance sheet.
