Performance reports

OREM, Utah – NCUA reported yesterday that continuing loan losses at Family First FCU erased all of the one-time $170 million credit union’s capital last year, leaving it with negative net worth of almost $13 million, the latest big Utah credit union to become insolvent.

SAN FRANCISCO — Mission SF Federal Credit Union says it needs $200,000 over the next two months to keep its doors open, and it is putting out feelers to potential investors.

LOS ANGELES — In a new sign of economic recovery, credit unions are moving tens of millions out of their loan loss reserves, enabling them to reduce red ink, and in some cases, move into the black.

LOS ANGELES – A growing number of troubled big credit unions are reporting positive income for 2010, while others are slashing losses, an indicator of an improving economy, especially in the so-called Sand States.

LOS ANGELES – In a new sign of economic recovery, credit unions are moving tens of millions out of their loan loss reserves, enabling them to reduce red ink, and in some cases, move into the black.

PASADENA, Calif. – In what poses at good news for both its members and the credit union movement as a whole which pays to resolve failed credit unions, Wescom CU reported net income for 2010 today of $2.7 million, its first profit since 2006. Wescom, which wracked up $198 million of losses in 2007-2009, is one of several large problem credit unions that are reporting profitable years for 2010 or big declines in losses, as massive charge-offs over the past three years have squeezed much of the bad loans out of the system. San Diego’s North Island Financial CU, which had a $52.4 million loss for 2009, also broke out of the red last year to the tune of an $11.5 million net. So did Schools Financial CU, which reported a $9.2 million 2009 loss, had a slim $1.1 million net for 2010. AltaOne FCU reported a $3.4 million net last year, after an $8.8 million loss for 2009. The improved financial performance by these California credit unions comes as an improving economy has allowed them to vastly reduce their loan loss provisions. Wescom CU, for example, cut its loan loss provisions in half to $47.5 million at year-end 2010. “I think in some sense they’re making the turn,” said Tun Wai, chief economist for NAFCU, who also cautioned that many barriers to profitability remain for credit unions heading into 2011, including anemic loan demand and the certainty of a NCUA assessments for both the corporate credit union bailout and a National CU Share Insurance Fund premium. Still, the early numbers coming out of some of the Sand States credit unions are promising. Desert Schools FCU, the Phoenix credit union giant that had an $81.3 million loss for 2009, trimmed its loan loss provisions by $56 million, helping cut losses to $18.9 million for 2010. Kern Schools FCU in Bakersfield, Calif., cut its losses from $406 million for 2008 to $12.8 million for 2010, after cutting its loan loss reserves in half to $27.5 million.

ROCHESTER, N.Y. – New York’s largest credit union, ESL FCU, paid its members a year-end bonus last week of $7.25 million, the 15th consecutive payout for the $3.8 billion credit union.

Consumer confidence continues to slide for credit union members, both regarding the overall economy and their own finances, according to a new survey released last week by Discover Financial Services.

GREEN BAY, Wis. – Members of PCM Employees CU received a $534,000 bonus to start of the new year as part of the credit union’s annual loan rebate.

MIDLAND, Mich. – Dow Chemical Employees CU paid members $5.7 million in rebates and rewards to celebrate the new year, one of the biggest payouts for 2010.

FAIRBORN, Ohio – Wright-Patt CU paid members a $4 million special dividend last week, the credit union’s second special payout in a row.

BROOMFIELD, Colo. – Members of Community Financial CU will get their share of a $375,000 special dividend this week.

PLANO, Texas - While many analysts are feeling optimistic about the economy and what's ahead in 2011, credit union CEOs apparently aren't joining them.

BRUNSWICK, Ga. – Marshland FCU announced last week it is closing two branches after costs associated with NCUA’s corporate system resolution and NCUSIF premium helped it plunge into the red last year.

HANSCOM AIR FORCE BASE, Mass. – Hanscom FCU returned $730,000 to its member-owners at the end of 2010 in the form of a loyalty dividend.

WASHINGTON – The dual trends of record-low savings rates and the de-leveraging of consumers has created a condition seldom, if ever, seen among credit unions – stagnation – that is, declines in both deposits and loans.

JAY, Maine – Otis FCU paid $350,000 in loan rebate and bonus dividends to end 2010.

ANTIGO, Wis. – CoVantage CU paid its members a $1.5 million patronage dividend, with the payout divided between loan rebates and additional savings dividends.

BAXTER, Minn. — With so many things beyond their control-NCUA assessments, increasing regulatory burden, interest rates and others-CFOs will continue to turn in 2011 to one of the few things they can control: costs.

WASHINGTON — With a continued slow recovery and no signs of a bounce-back in lending, credit unions' number one job in 2011 will be to find ways to gain greater share of their current members' loan business.