Share insurance fund premiums and impairments hit the $162 million Community One Federal Credit Union especially hard, helping to knock the Las Vegas-based credit union down to 2% capital, including optional assets.
However, credit union managers aren't anticipating a surprise Friday afternoon visit from the NCUA.
"We've been working with NCUA since the beginning of year, and because of our capital situation, NCUA has been monitoring us," said Jerry Rosen, vice president of marketing. "We have a good working relationship with them, and they've allowed us to continue our operations and make business decisions that will improve our capital position."
Recommended For You
The credit union was on pace to record a $500,000 net profit for 1st quarter 2009, until it wrote off $1.35 million in share insurance fund premium and impairment charges. Community One is waiting for Western Corporate FCU's audited financials before recording that loss.
Deliquencies and charge offs have spiked thanks to high unemployment rates in Las Vegas, Rosen said. Losses are evenly split among credit cards, auto loans and home equity. The combined delinquency and charge off ratio is 6.52% for March 2009, up from 3.17% in March 2008.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
