Data show that delinquent business loans (member and non-member) are highly concentrated. A business loan is defined as being delinquent if it is 2 months or more past due.
Sixty-nine credit unions at the end of 2009 were responsible for three-fourth of all delinquent business loans, although they held less than one-third of the industry’s business loans. The twenty-five credit unions with the most delinquent business loans reported $668.5 million in past due business loans – representing 55 percent of all delinquent business loans at credit unions. These credit unions only accounted for 19 percent of all business loans reported by credit unions.
The credit union with the largest portfolio of past due business loans is America First in Utah with $150 million. In second place is Texans CU with $95 million in past due business loans.
The following table lists the 25 credit unions with the largest amount of delinquent business loans (click on image to enlarge).
combine the st. paul croatian story with this one and here's a scary conclusion...
ReplyDeleteevangelical's posted delinquecy isnt as stated. evangelical's delinquency is MUCH larger. perhaps like st. paul croatian and ncua, evangelical (and many others) are practicing forbearence. perhaps someone should look into it.
And what does this mean? What is the significance?
ReplyDeleteIt is up to the reader to draw his or hers own conclusion about the significance of this information. I'm just providing information in a format that can be easily accessed.
ReplyDeleteFacts; MBL delinquency is lower among credit unions than banks; most MBL delinquency is concentrated in 25-70 credit unions; one could say that most credit unions that engage in MBL lending appear to know what they are doing. So what's the problem?
ReplyDeleteMB
Thanks for the information Keith.
ReplyDeleteAgree, thanks for the information Keith. If this is as bad as it gets in the credit union sector, then they are killing many bumbling banks. Survival (and ascension) of the fittest should be expected. Our banking world is changing.
ReplyDeleteOutside investors will always need to look to banks for earnings opportunities; yet bankers are already looking to credit unions for jobs.