The credit union posted a gain of about $50 million on the sale in December 2022. It then posted losses from Safe Harbor of $44.4 million in the first quarter (gains elsewhere reduced the first-quarter net loss to $41.5 million) and $9.3 million in the second quarter and $9 million in the third quarter.

The credit union has not yet responded to a request from CU Times to explain the third- and fourth-quarter losses, and how much is attributable to Safe Harbor.

Safe Harbor's third-quarter report said that Partner Colorado is the company's largest stockholder, owning 46.4% of its common stock. Safe Harbor (Nasdaq: SHFS) closed Thursday at $1.00, which puts Partner Colorado's stake at $21.6 million. The stock fell from $6.99 on Sept. 30 when the spin-off closed to a low of $0.34 on Aug. 29.

The fourth-quarter loss was the combination of a $1.6 million expense in the operating income category, a lower net interest margin and a spike in loan loss provisions. Overhead expenses fell, buffering the loss.

Partner Colorado had a sharp drop in net interest income. It was $3.4 million, or 2.10% of average assets, down from net interest margins of 3.16% a year earlier and 2.10% in the third quarter.

Total non-interest income was a cost: -$1.6 million (-0.98%), an improvement from -$6.7 million (-3.98%) in the third quarter.

The biggest factor was "Other Operating Income," an NCUA category that includes income and losses from CUSOs and other entities.

Other operating income was -$941,953 (-0.58%) in the fourth quarter, an improvement from -$7.6 million (-4.54%) in the third quarter. But it couldn't match the $65.2 million (39.19%) earned in 2022′s fourth quarter, which included one-time gains from the spin-off.

Employee pay was $2.4 million (1.51%), down from $3.6 million (2.19%) a year earlier and $2.6 million (1.54%) in the third quarter.

Non-salary overhead was $2.2 million (1.35%), down from $2.5 million (1.49%) in the third quarter. Non-salary overhead in 2022′s fourth quarter was $23.5 million (14.10%), boosted by $18.9 million in "Miscellaneous Non-Interest Expense," a category that cost only $535,043 in the first nine months of 2022 and $400,523 for all 12 months of 2023.

Many credit unions have sharply increased their loan loss provisions this year, and Partner Colorado was no exception. It provisioned $1.1 million (0.72%) in the fourth quarter, or 0.72% of average assets. From the first quarter of 2022 through the third quarter of 2023, provisions had ranged from 0.10% to 0.26% of average assets.

Net charge-offs were $455,258 in the fourth quarter, generating a net charge-off ratio of 0.43%, up from 0.25% a year earlier and 0.35% in the third quarter.

Loans at least 60 days delinquent were $5.8 million on Dec. 31, or 1.31% of total loans, up from delinquency rates of 0.30% a year earlier and 1.16% in September.

While most credit unions have seen originations fall, Partner Colorado produced $56.2 million in the fourth quarter, up 58% from a year earlier and up 26% from the third quarter.