A credit union is only a stable as the loans its makes and the members it gains, yet improving asset quality at year's end helped the industry as a whole find stronger footing in the New Year. Both delinquency and charge offs declined at year’s end, with the troubled loan rate noticeably improved in several of hard hit sand states.
The troubled loan rate is calculated as all loans 30 days or more past due, plus year-to-date charge-offs, minus recoveries divided by total loans.
Below is a leader table showing the top ten states with most improved annualized troubled loan rate as of 4Q 2010, according to Callahan & Associates Peer-to-Peer software.
| Top 10 States by Improvement in Troubled Loan Rate |
| Data as of December 31 for all U.S. Credit Unions |
| Rank |
State |
# of CUs |
12-Mo. Change in TLR |
2009 Troubled Loan Rate |
2010 Troubled Loan Rate |
| 1 |
Nevada |
23 |
-5.25% |
12.91% |
7.66% |
| 2 |
Delaware |
26 |
-3.85% |
6.68% |
2.83% |
| 3 |
Arizona |
51 |
-3.56% |
10.42% |
6.86% |
| 4 |
Utah |
94 |
-3.04% |
8.25% |
5.21% |
| 5 |
Alabama |
127 |
-2.98% |
5.40% |
2.42% |
| 6 |
California |
441 |
-2.73% |
6.21% |
3.48% |
| 7 |
Florida |
176 |
-2.73% |
7.22% |
4.49% |
| 8 |
Mississippi |
92 |
-2.57% |
4.69% |
2.12% |
| 9 |
Hawaii |
85 |
-2.29% |
4.10% |
1.81% |
| 10 |
Minnesota |
152 |
-2.20% |
4.74% |
2.54% |
| U.S. Average |
-0.29% |
4.67% |
4.38% |