SACRAMENTO -- Nearly one-third of all credit unions in California reported negative ROA during the 1st quarter 2008, thanks to large increases in loan loss provisions. Delinquencies and charge-offs are up at $6.7 billion The Golden 1 Credit Union, too; but, CEO Teresa Halleck's shop also delivered 0.92% ROA for 1st quarter 2008, the exact same figure as 1st quarter 2007.
"The primary factor, I would say, is that we did not partner with any external firms for our home equity lending," Halleck said.
The Golden 1 did use a third party to originate equity loans, nor did it partner with another institution to grant a second mortgage behind the partner's first, she said. Halleck said she's seen evidence that such partnerships are responsible for at least some of California's loan losses.
The leader of California's largest credit union said size played a role in her ability to keep The Golden 1's equity lending in-house.
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