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Unformatted text preview: 1.6%, in the first six months of
2011 versus a decline of 1% in 2010. With ROA of
0.95%, earnings were far stronger than in 2010,
which came in at 0.80% ROA. The improved
earnings were stimulated by low loan charge-offs
and lower delinquent loans that resulted in substantially lower loan provision expense. Loans
that were delinquent more than 60 days retreated
from 1.20% of loans in December 2010 to 1.02%
in June 2011, while loans that were charged off declined from 1.14% to 0.80% for the same time
period. The combination of these two substantially
improved metrics accounted for 0.44% of earnings
improvement for all Colorado credit unions.
The industry continues to bear the expense to
recapitalize the losses to the National Credit Union
Share Insurance Fund (NCUSIF), which were
primarily caused by the failure of five large corporate credit unions in 2009. Importantly, the losses
incurred by the NCUSIF are solely borne by credit
unions and do not entail the use of any taxpayer
monies. As of June 2011, 98% of all of Colorado...
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