SACRAMENTO -- Nearly one-third of all credit unions inCalifornia reported negative ROA during the 1st quarter 2008,thanks to large increases in loan loss provisions. Delinquenciesand charge-offs are up at $6.7 billion The Golden 1 Credit Union,too; but, CEO Teresa Halleck's shop also delivered 0.92% ROA for1st quarter 2008, the exact same figure as 1st quarter 2007.

"The primary factor, I would say, is that we did not partnerwith any external firms for our home equity lending," Hallecksaid.

The Golden 1 did use a third party to originate equity loans,nor did it partner with another institution to grant a secondmortgage behind the partner's first, she said. Halleck said she'sseen evidence that such partnerships are responsible for at leastsome of California's loan losses.

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