SAN DIEGO – Many large credit unions recording enormous year-end losses managed to keep their capital ratios comparatively high.
The $4.2 billion Kinecta Federal Credit Union ended the year with a 7.64% capital ratio, not far off the institution's 8% ideal, despite recording a historic $44 million net loss and setting aside nearly $83 million in loan loss provisions.
CFO Karen Christensen said she reduced assets by $190 million during the year to alleviate capital pressure, selling off some existing loans and cutting back on new loan production.
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