WASHINGTON — California, Nevada, Arizona and Florida credit unions aren't feeling sorry for themselves when they say they've got it harder than the rest of the country. According to Callahan and Associates' Sept. 3 "Trendwatch" broadcast, the four states are experiencing the worst losses in the industry, driven primarily by loan loss allowances.
"Those four states are where you see the biggest increases in allowances," said Callahan Executive Vice President Jay Johnson. "New data came out a week or so ago regarding delinquencies, and those four states are overrepresented in that category, as well. With so many delinquencies coming, it's not surprising they're seeing the biggest allowance increases."
Each state has its own set of regional challenges driving financials into the basement, but one thing they all have in common is a gridlocked real estate market. Those four states experienced the biggest real estate value gains, Johnson said. When the real estate market went bust, they in turn experienced the biggest decreases.
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