Alaska USA leads a strong third quarter for CUs
Alaska’s six biggest credit unions had another beefy quarter, on average, though delinquent loans and foreclosures cut into the bottom line for an unlucky few.
Overall, the six largest credit unions increased their collective net income 39 percent compared to last year to $52.7 million, up from $38 million. Total assets grew 10 percent year-over-year, topping $8.5 billion. Each financial institution grew its loan portfolio, for a total $6.4 billion.
Alaska USA, the state’s largest credit union, gained the bulk of the overall third quarter net income, up to $39.5 million in 2015, a $13.6 million gain. The company grew its total loans $650 million. This follows a strong second quarter, where net income shot up 54 percent year over year.
Denali Alaskan led the pack in growth rate, despite holding $900,000 more in delinquent loans than in the same quarter 2014. The credit union vaulted its net income over 200 percent year-over-year to $4.9 million.
Matanuska Valley credit union made an 82 percent gain as well, breaking the $3 million mark for the quarter, driven by a $40 million total loan increase and 21 percent reduction in delinquent loans.
Not all were as fortunate. Credit Union 1 saw a 39 percent net income decline for the quarter, driven by a $1.5 million spike in delinquent loans over last year.
Spirit of Alaska’s income dropped 23 percent, saddled with $900,000 in foreclosed property it didn’t have in 2014. This is the second quarter in a row foreclosed properties have bitten chunks from the credit union. Second quarter net income decreased 33 percent to $349,000, having lost $2.1 million in loans and gained $1.2 million in foreclosed property.
Juneau’s True North Credit Union has had a rough year as well. Third quarterly net income plummeted over 350 percent year over year to $155,160, down from more than $700,000, with $140,000 more in foreclosures than last year. This marks the second quarter of declining income; net income shrank from $351,000 in second quarter 2014 to just more than $12,000 in 2015.
DJ Summers can be reached at [email protected].