After acquiring failed Cal State 9 Credit Union in May 2008, and failed Sterlent Credit Union the following month, how is the $3.8 billion Patelco Credit Union doing?
Pretty good, according to CEO Ken Burns, who was selected to replace retired CEO Andy Hunter earlier this year.
In fact, Burns said he anticipates positive earnings next year, despite warnings by regulators and economists that 2010 will be a tough year for California.
The San Francisco-based Patelco is experiencing loan losses due to unemployment and decreased ability to repay, he said, but the credit union has found some success in restructuring mortgage loans, and has beefed up risk management and collections. Most of the institution's $30 million net loss as of Sept. 30 was due to NCUSIF assessments, according to 5300 reports.
Patelco executives are currently developing a master plan to take the credit union beyond 2010, and Burns said his team is "applying real-time learning" to success strategies and core competencies to ensure long-term growth and prosperity.
Other strategies include "the runoff of high-cost CDs" while building core deposits, and increasing services per household, focusing on deepening existing member relationships rather than going after new members, he said.
