OnPoint checkup shows truly grim quarter (Jack Bog's Blog)

We continue our series of quarterly snapshots of the operating results at OnPoint Community Credit Union -- a barometer of the economic times in Portland's neighborhoods. The fourth quarter was, in a word, brutal. The year 2008 ended with the institution's delinquent loans more than four times what they were at the end of 2007.

The whole sad story, as officially reported to the National Credit Union Administration, is in this Excel file. Here are the categories of numbers that we've been following with our untrained eye over the past year or so:

Item	12/31/07	9/30/08	12/31/08	Quarterly increase (decrease)	12-month increase (decrease)
Total investments	$209,617,805	$246,342,512	$204,032,809	(17.18%)	(2.66%)
Federal agency securities	$66,299,032	$140,786,482	$126,745,213	(9.97%)	91.17%
Total reportable delinquency - total delinquent loans	$5,472,354	$14,302,884	$23,621,140	65.15%	331.64%
Total reportable delinquency - indirect lending	$2,592,869	$977,090	$8,891,285	809.98%	242.91%
Total outstanding loan balances subject to bankruptcies	$6,466,112	$9,979,220	$14,364,478	43.91%	122.15%
Ratio of delinquent loans to total loans (percent)	0.25	0.63	1.05
Ratio of total delinquent loans to net worth (percent)	2.35	5.74	9.25

Delinquent loans are those delinquent for two months or more.

Year-to-date net income for the quarter ended December 31 was $22,568,772, down 14.06% from the same quarter last year ($26,262,488). For the third straight quarter, deposits fell, from $2,221,206,727 to $2,191,035,640 -- a 1.36% drop. Deposits a year earlier were $2,259,994,005, and thus for the year deposits fell 3.05%.

Comments (15)

"The fourth quarter was, in a word, brutal."

Yes, but the halftime show rocked.

Posted by Bill McDonald | February 1, 2009 9:51 PM

I don't intend for this to come of jerky sounding, but has anyone heard of a situation where someone is in default for a reason other that they were greedy or stupid.

I know some are the result of losing their jobs and I understand that. But I can't understand how any human being can rationalize a $300K mortgage with $35 in income.

Posted by mp97303 | February 1, 2009 10:05 PM

It's somewhat bad, but not as bad as I have seen with many other banks AND credit unions in the NW. The drop in "total investments" and in turn deposits isn't too bad really. I use OnPoint and have faith in how they run things, It will be very interesting to see the numbers in about 6 months and again in a year....

Posted by Westside Guy | February 2, 2009 12:23 AM

But I can't understand how any human being can rationalize a $300K mortgage with $35 in income.

Not to mention all those people who tried to buy 2 or 3!

Posted by none | February 2, 2009 12:24 AM

They're still spending quite a bit in non-targeted advertising - I just received a postcard in the mail from them last week, inviting me to change my accounts over to them for some bonus - $100 as I recall.

Think I'll pass.

Posted by john rettig | February 2, 2009 12:37 AM

CounterCurrents (William Bowles) Newsletter 31 January, 2009 – The American Economy Is Not Coming Back, By Dave Lindorff.

America, and individual Americans, have been living profligately for years in an unreal economy, propped up by easy credit which inflated the value of real estate to incredible levels, and which led people to spend way beyond their means. Ordinary middle-class working people have been encouraged to buy obscenely oversized homes ... Now this is all crashing down. ...

---
California pension funds close to bankruptcy, By Kevin Martinez, 30 January 2009.

The two largest pension funds in California, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), have lost billions of dollars in value. Hundreds of thousands of retiring state employees and teachers now face the stark choice of accepting much reduced pension checks or working past their ....

------
WilliamBowles.INFOinfo/ich/2009/0109/ich_310109.html
31 January, 2009: Weekend Edition:

* The War And Occupation Of Iraq Costs $592,983,731,884
See the cost in your community
nationalpriorities.org/index.php?option=com_wrapper&Itemid=182

* Gaza Invasion: Powered By The U.S.
... U.S. has provided about $53 billion in military aid to Israel. ... since 2004, U.S. taxpayers have paid to supply over 500 million gallons of refined oil products — worth about $1.1 billion — to the Israeli military.

* William Bowles: Living (and dying) in the age of barbarism
“Out of all the devastation I have seen so far, there is one story in particular that I think the world needs to hear. I met a mother who was at home with her ten children when Israeli soldiers entered the house. The soldiers told her she had to choose five of her children to “give as a gift to Israel.” As she screamed in horror they repeated the demand and told her she could choose or they would choose for her. Then these soldiers murdered five of her children in front of her…” -- Israeli Soldiers Play ‘Sophie’s Choice’ With Palestinian Mothers www.uruknet.de/?p=51196

---

Hey, when folks can't pay back what they borrowed from fascist Federal Reserve fiat-money printers, as with any mob organization borrowers can probably 'work off' their loans doing murders ...

Posted by Tenskwatawa | February 2, 2009 12:40 AM

Credit Union delinquency data - where can I find it for other credit unions? did this come from point west website??

Posted by Frank | February 2, 2009 5:43 AM

"I don't intend for this to come of jerky sounding, but has anyone heard of a situation where someone is in default for a reason other that they were greedy or stupid."

I'd be curious on mortgage defaults what % are:
1) Truly broke and can't afford it
2) Can afford it, but are underwater and just are throwing back the keys.

On 2), most of these people prob had bad credit anyways and are thinking this isnt much more of a ding.

Posted by Steve | February 2, 2009 7:39 AM

When I see ads for either banks or utilities - especially on prime time television - it sort of puts my teeth on edge.

Never liked the arch tone of the Kaiser Permanente (THRIVE!!!!!) ads and unfortunately the two OnPoint television ads featuring "customers" (young girl with headphones & laptop in coffee shop & oblivious sleeping guy - "without a care in the world") feel like they were developed by the same folks. Looks like they're targeting young singles.

I've been a PTCU customer for many years and have always been satisfied with their service but I don't think I've ever seen them advertise on TV before.

Posted by NW Portlander | February 2, 2009 8:14 AM

Any member should be able to get this info directly from their CU. You can probably arrange to have it mailed to you. Also should be available online. CU should have no reticence about referring a member to online sources, if any. As Trotsky said, "Open the books!"

Credit unions! Another great communist idea, like universal health care, the eight hour day, birth control, and the weekend.

Posted by dyspeptic | February 2, 2009 8:23 AM

I have a friend who worked for the PTCU several years ago in a high position, but quit after about a year because of ethical concerns of their top person.

Posted by Robert W | February 2, 2009 11:20 AM

Ah...no gainshare for the employees this quarter. I guess they've learned to not count on it as automatic money every three months anymore.

Posted by Clare V | February 2, 2009 11:23 AM

Steve

I have heard of Realtors having homeowners who are upside down buy a new house and then walk away from their old house. Classy.

Posted by mp97303 | February 2, 2009 12:37 PM

Go here.

Posted by Jack Bog | February 2, 2009 1:06 PM

Thanks for the info. I ordered the report for Point West.

Posted by Frank | February 2, 2009 6:09 PM