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RIVERSIDE, Calif.-Altura Credit Union continued funding its Allowance for Loan Losses in the third quarter, but with defaults trending down it is now counting on the conservative approach to pay off in 2011.

Virtually every CEO Credit Union Journal spoke with for this special report reported weak loan demand. When discussing their local marketplace conditions, most expressed relief that the worst appeared to be over, but there was little optimism for improvement any time soon.

ONTARIO, Calif.-While cautioning that he had not yet had the opportunity to review all third quarter Call Report data in detail, the California and Nevada's Daniel Penrod said the likelihood is Q3 numbers for credit unions in the two states will be "muted."

LAS VEGAS-As is the case with many credit unions across the country, posting lower losses in the third quarter of this year over previous quarters was not a reason to celebrate, but for Clark County CU, it was still worth noting.

SACRAMENTO, Calif.-With loan demand and consumer spending both down, The Golden 1 is looking for alternative sources of income, including investments.

RENO, Nev.-Defaults have begun declining at Great Basin FCU, which is allowing it to enjoy "modest profitability."

LAS VEGAS-Brad Beal, CEO of $693-million Nevada FCU, knows this market will pick up when the consumers visiting this vacation spot feel comfortable spending more money. The problem? "No one knows when that will happen," he said.

NORTH HIGHLANDS, Calif.-Despite continuing sluggishness in the housing market and high unemployment in greater Sacramento, SAFE CU CEO Henry Wirz is projecting black numbers in 2010.

SAFE Credit Union has been able to expand in several areas as it has fought back against the recession, according to its CEO, Henry Wirz. Here are some of the initiatives that have worked well in 2010.

SAN DIEGO-When Teresa Halleck moved from being president and CEO of $7.2-billion The Golden 1 in Sacramento, Calif., to $4.9-billion San Diego County CU, it could have been said she was moving out of the frying pan and into the fire.

SUNNYVALE, Calif.-There are not many areas in the Golden State that have escaped a free fall in home prices and the resulting domino effect on consumers' wallets, but Rick Heldebrant says his credit union is "lucky" to be where it is.

MECKLENBURG, N.C. – Evangelical Christian CU, the California church lender, acquired another troubled church property, the Greater Salem Church, a a foreclosure auction Friday for $5.1 million.

REDWOOD CITY, Calif. – San Mateo CU acquired another branch on the peninsula with the acquisition of ailing Palo Alto Community FCU.

WASHINGTON – A federal judge this morning rejected a bid by Kappa Alpha Psi FCU to reverse NCUA’s liquidation of the African-American institution, saying the credit union regulator was within its right to shutter the tiny failure, the nation’s first Internet-only credit union, in August.

DEARBORN, Mich. – DFCU Financial, which has returned more than $90 million to members in special dividends over the past four years, announced plans this morning for another $19 million payout this year.

EVANSVILLE, In. – Centra CU, the mortgage holder on the old Riverhouse Hotel, bought back the troubled property Friday at a sheriff’s auction to protect its original investment.

YUMA, Ariz. – The FBI has launched a criminal probe of potential fraud involving member business loans that have driven AEA FCU to the verge of insolvency, sources confirmed to the Credit Union Journal.

SALT LAKE CITY – Beehive CU, the erstwhile convert to bank, has come under intense regulatory scrutiny in recent weeks after reporting a $5.8 million loss and the elimination of all of its net worth in the third quarter.

WASHINGTON – Regulators closed another four banks Friday, making a total of 143 bank failures so far in 2010 and exceeding last year’s total of 140.

ATLANTA – Payments processing giant First Data Corp. reported this morning that huge debt incurred from the 2007 buyout of the company by private equity firm Kohlberg Kravis Roberts & Co. continues to weigh heavily on its bottom line, creating a $431.3 million loss for its third quarter, even while revenues continued to rise, increasing a strong 8% in the period.