The Press-Enterprise reported that California's Inland Empire credit unions are confronted with lean times.
According to NCUA, San Bernardino-based Arrowhead Credit Union finished 2009 with a net loss of $44.5 million; while Riverside-headquartered Altura and Moreno Valley-based Visterra each posted a net loss of just over $10.4 million.
At the end of 2009, Arrowhead CU is undercapitalized, while Altura and Visterra are adequately capitalized.
Aren't ALL credit unions in California struggling? I'm unclear why there is anything special about the Inland Empire.
ReplyDeleteJeffry:
ReplyDeleteNot every California CU is struggling.
The Inland Empire has been hard hit by the collapse of the housing market and the recession. High Desert and Members Own, which were closed last year by NCUA, were located in the Inland Empire.
Dr. Leggett is correct, there is a range of performance into which California credit unions fall. Some are doing extremely well, some have encountered significant difficulties.
ReplyDeleteDr. Leggett is focusing on the struggling credit unions, because when he explains the purpose of this blog is "Keeping an Eye on the Credit Union Scene," more reasonably, it's really just keeping an eye on the credit unions stories that are most politically adventagious for the ABA to highlight. For the full story of credit union performance (or the "credit union scene" if you prefer), please refer to industry and mainstream media sources.