Delinquent loans nag OnPoint in first quarter
Our regular quarterly look at the financial statements of Portland's OnPoint Community Credit Union provides another glimpse into the state of the local economy, as it has since we first started checking into those reports more than two years ago. And no surprise this time around, there are still quite a few credit union members suffering out there. Delinquent loans continued to swell at OnPoint in the first quarter of 2010, erasing some of the recovery in that department that had been noted in the immediately preceding quarter.
Here are the numbers, as recently filed with the National Credit Union Administration:
|Item||3/31/09||12/31/09||3/31/10||Quarterly increase (decrease)||12-month increase (decrease)|
|Federal agency securities||$124,075,055||$285,152,450||$420,887,987||47.60%||239.22%|
|Total reportable delinquency - total delinquent loans||$27,041,586||$22,551,519||$31,397,462||39.23%||16.11%|
|Total reportable delinquency - indirect lending||$8,725,911||$4,449,517||$3,598,018||(19.14%)||(58.77%)|
|Total outstanding loan balances subject to bankruptcies||$4,978,864||$29,565,449||$7,004,332||(76.31%)||40.68%|
|Ratio of delinquent loans to total loans (percent)||1.22||1.06||1.51|
|Ratio of total delinquent loans to net worth (percent)||11.59||8.73||11.96|
Delinquent loans are those delinquent for two months or more.
Two of the figures that we were watching closely when the economy started to implode -- federal agency securities and indirect lending -- no longer seem to be much of an issue at OnPoint. However, the delinquent loan ratios, which had improved toward the end of 2009, slipped in the first quarter of 2010, to worse levels than a year before.
It's also sobering to looking back to OnPoint's delinquent loan ratios not so long ago, in the third quarter of 2007. At that point, delinquent loans to total loans were just 0.17%, and delinquent loans to net worth were just 1.56%. Today they're at 1.51% and 11.96%, respectively.
Over on the profit and loss side, OnPoint's net income for the first quarter of 2010 was $4,166,831, up 22.98% from $3,388,178 in the first quarter of 2009. In the first quarter of 2010, deposits increased from $2,381,752,154 to $2,446,618,429 -- a third consecutive quarterly increase, of 2.72%. Deposits a year earlier were $2,321,865,874, and thus for the year, deposits were up 5.37%.
That brings us to our comparison of some of OnPoint's financial data with that of three other Oregon-based credit unions: Unitus here in Portland, First Tech in Beaverton, and Oregon Community down in Eugene.
One number that we've been tracking for the group has been the ratio of delinquent loans (two months or more) to total loans -- the higher the number, the worse the portfolio from a delinquency standpoint. Here are the percentages for all four credit unions in that department at three recent reporting dates:
Another ratio that we've been watching is delinquent loans to net worth. Here are the percentages for the group on that score:
Only OnPoint's delinquency ratios worsened from the end of 2009 to March 31, 2010. The other three institutions' ratios improved during the quarter.
Finally, here are the year-to-date net income (loss) figures for the group, worth noting for the trends:
Everyone's operating results improved from the year before, but OnPoint's improvement was the least dramatic.
This may be the last quarter that we'll be able track First Tech in a meaningful way for a while. It's planning to merge into Addison Avenue Credit Union in Palo Alto, and at that point it will be hard to compare First Tech's past with its present. Perhaps we'll have one more quarter of First Tech as we know it, but even then, we may find some last-minute accounting maneuvers in preparation for the combination of the two institutions.