SAN DIEGO — Losses from Centrix loans caused Great American Credit Union to post a net income loss of $1.5 million in 2006 and set aside $2.1 million in loan loss reserves for the year. The $57 million GACU had heavy exposure in its Centrix Portfolio Management Program and its own indirect lending initiatives with some 95% of charge offs in indirect loans in 2006.

“We clearly took a risk on Centrix, as others did,” said John C. Weaver, president of GACU. “I don’t think anyone got in expecting to take the type of losses we took.” But Weaver also noted that, “We could choose not to merge (members have not yet approved the merger) but I think it will be approved and the benefits will far outweigh not merging.” Wescom was selected, Weaver said, after a very thorough process conducted by the board, following merger proposals having been submitted by six interested CUs, two of which were located in San Diego.

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