Sunday, December 12, 2010

Loan Modifications, September 2010

NCUA reported that federally insured credit unions had approximately $11.2 billion in loan modifications on their books as of the end of September 2010. In other words, 1.98 percent of all loans on the books of credit unions have been modified.

The following table ranks the top 50 credit unions -- both federally insured and privately insured -- with at least $25 million in outstanding total loans as of September 30, 2010 that have the highest percentage of modified loans. (click on image to enlarge)

As of the end of the third quarter, thirty-eight credit unions reported having at least 10 percent of their outstanding loans modified with Beehive Credit Union in Utah reporting that almost 28 percent of its loans (dollar volume) have been modified.


  1. This year Bank of America is happily bragging they have over 200,000 loan modifications in the works. But if you are suggesting loan mods = risk of failure, then it is smart that your chart uses data drawn from Highline Financial, as one of Highline’s most recent Banking Sector Watch List includes 744 worrisome banks with combined total assets of $468 billion. And of that 744, fully one-third hold total combined assets of $125 billion and are considered to be at EXTREME risk of failure.

    Not sure the public can bail out the banks with another spare $468 billion, or that there’s not a worry regarding solvency of FDIC if the Agency needed to cover (another) $125 billion. And $125 billion in Highline’s EXTREME risk category is about one hundred times greater than the total of all the modified credit union loans (troubled or not) on the chart you cribbed from Highline for this post.

    Happy New Year.

  2. I've posted this before and so I'll point it out again. Beehive CU attempted to convert to a mutual savings bank two or three years ago. With the industry tanking, they withdrew. I wonder if risky loans were made to maximize fee and interest income that would lead to investor profits. I know it's a stretch, but it seems like the OIG is finding that management judgement error has led to failures. How much greed is behind all of this?

  3. what is the comparison of troubled assets of credit unions as a % of the ncusif and troubled bank assets as a % of fdic?
    looking at raw $ is meaningless without comparing to the insurance fund.



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