ANN ARBOR, Mich. — When the real estate boom was booming, Huron River Area Credit Union boomed right along with it. But as the tide turned, so did the CU’s financials.

The contrast offers a lesson for CU managers and boards now that speculating in real estate development by mid-sized CUs isn’t the best way to achieve a positive balance sheet. The CU’s second-quarter loss is $58.9 million. Huron’s total loan portfolio was $193 million at the end of 2005 then jumped to $311 million in 2006, a remarkable 61% increase. At the end of June, HRACU had to put aside $61.5 million for loan loss reserves to cover loans likely to go south. But the bleeding wasn’t over; it further beefed up reserves as delinquencies kept mounting. So far this year it has reserved $73.1 million.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.