California credit unions had another increase in loan delinquencies during the second quarter, and more of them have been deemed troubled.
The delinquency ratio for credit unions in the state topped 2% of loans at midyear, compared with 1.58% for those nationwide, according to William Haraf, commissioner of the California Department of Financial Institutions.
Overall loan defaults among the state's credit unions surged 12% in the quarter, to more than $1 billion. Delinquencies on real estate loans rose even faster, by 27%, to $680 million. Delinquencies on business loans also climbed, to 1.78%, from 1.23% in the first quarter.
The total number of problem credit unions grew to 53, a dozen more than at March 31. At midyear 54 California credit unions were operating under supervisory agreements with state or federal regulators.
Daniel Penrod, an analyst for the California Credit Union League, said the state was one of those hardest-hit by the housing crisis.
But even with the plunge in real estate prices the last two years and the rise in the state's unemployment rate to 11.6%, signs have emerged of a possible recovery, he said. Home prices have stopped declining, and the rise in the unemployment rate has slowed.