Commercial loan troubles were recent at State Employees Credit Union (SECU) of Santa Fe, N.M., and the credit union said it "isn't a portfolio-level concern."
However, New Mexico's SECU ($1.3 billion in assets, 53,700 members at Dec. 31) was one of seven credit unions that together accounted for 22% of 60-day-plus commercial delinquencies in the fourth quarter.
SECU held $220.3 million in commercial loans on Dec. 31, accounting for nearly 24% of total loans, according to NCUA data drawn from Callahan's Peer Suite. The delinquency rate was 12% for commercial loans, compared with 2.93% for other loans.
SECU of New Mexico's commercial delinquency rate rose from 4.51% in March 2025 to 9.17% in June, and rose to 12% in December. Its quarterly net charge-off rate for commercial loans has remained near zero for at least the past two years.
SECU earned $5 million (ROA 1.54%) in the fourth quarter, up from $3 million (0.97%) in 2024's fourth quarter. For 2025, it earned $16.2 million (5.1%), up from $6.6 million (2.19%) in 2024.
SECU responded to CU Times with an email saying the commercial delinquencies and charge-offs reflect "a single, isolated situation that we have been actively managing and resolving. It is not indicative of a broader trend, portfolio-level concern, or systemic underwriting issue at our credit union."
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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