A recent independent review of the June 30, 2014 financial statements of $29.1 billon State Employees' Credit Union in Raleigh, N.C., by consulting firm CliftonLarsonAllen showed that the cooperative had seven times the necessary funds to cover the credit union's most recent annual loan losses.
The allowance for loan and lease loss is a key factor that measures a credit union's financial stability and, as its name implies, the institution's ability to cover financial losses attributable to loans and leases.
SECU's $16 billion loan portfolio was deemed to be high quality by the consulting firm, with strong loss reserves available as a prudent measure to protect members. The credit union's ALLL account balance was more than $212 million as of the June 30 fiscal year-end. Loans with a 90-day delinquency equaled 0.99%, or less than 1%.
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