San Diego Credit Unions' ROA Profiled
SAN DIEGO -- More than a handful of credit unions in the San Diego area were profiled for their return on asset performances.
The November issue of the San Diego Metropolitan Uptown Examiner & Daily Business Report said several credit unions surpassed the 1.0 ROA mark including Chula Vista City Employees Credit Union (2.39 ROA), Faith Based Federal (2.39), the Metropolitan Credit Union (1.71), San Diego County Credit Union (1.66), Paradise Valley Credit Union (1.47), Pacific Marine Credit Union (1.34), Cabrillo Credit Union (1.13) and San Diego Medical Federal (1.03). Each of these eight also topped CUNA's 2006 national ROA forecast of 0.82, while Escondido Federal tied the mark, the publication reported.
The 29 credit unions headquartered in San Diego County have a combined 936,000 members. At the end of the fiscal year, they held about $12.29 billion, $4.6 million more than a year earlier. While pedestrian by credit union standards, the rate exceeded CUNA's 2006 forecast of 3.1%. It was sharply off the five-year average of 8.7%, according to the article.
Metropolitan was the biggest gainer, moving from No. 17 on last year's list of top ROA performers to No. 3 this year, the publication said. President/CEO Joe Schroeder, who took the helm last year, attributes the gain to operating expense management and improved lending quality.
The publication reported that Mission Fed's ROA fell from 0.9% to zero. President/CEO Jim Miller attributes the drop to "getting out of specific loan programs that were no longer profitable," and discounts on asset sales. Even with these issues, Mission Fed managed to grow 2% in assets, approaching $2 billion, the article read. North Island remained a "steady performer" with an ROA of 0.57, off 17%, and a 1% growth in assets, topping $1.5 billion.
First Future Credit Union is nearing the $1 billion mark, but its ROA declined 33% as of June 30, the publication reported. It hopes auto loan incentives will turn things around, said Marla Shepard, president/CEO.