Rhode Island: Credit Unions Trying Not to Flounder
Despite shedding jobs, cutting pay, trimming benefits, curbing services and expanding the tax base, the state of Rhode Island is in deep financial trouble, and credit unions there are doing their best to stay afloat.
Rhode Island’s credit unions reported a soggy 38 basis points worth of profit during first quarter 2012, according to the NCUA’s Quarterly U.S. Map Review, well below the national ROAA average of 86 basis points. But in spite of the gloomy outlook, things aren’t completely underwater in the Ocean State.
“Navigant has a larger investment portfolio and this results in lower income,” said its president/CEO, Gary Furtado. “Navigant prides itself on its high-touch personal service model, which translates into a higher cost structure.”
Delinquencies rates have gone up since last year, from 0.95% as of June 30, 2011 to 1.03% one year later, but Furtado said that on the positive side, Navigant doesn’t have any sub-prime loans on its books.