Many local credit unions are weighed down by more seriously overdue loans, foreclosures and repossessed vehicles than at the same point last year.

Some credit unions in the Black Hills are loaded with double and, in some cases, triple the loans past due more than 60 days, foreclosed properties and repossessed vehicles, according to data from the National Credit Union Administration. Eleven of 13 federally-insured credit unions in the Black Hills have taken on more past-due loans, finding themselves with debtors lagging behind in their payments.

Rapid City Telco Federal Credit Union lost a collector, had to foreclose on a bed-and-breakfast business and saw a jump in the number of overdue loans.

"We were doing really good there until the end of the year, when people started losing their jobs, …" manager Pat Puckett said.

Delinquencies have slowed since, the credit union has found a collector, and a large overdue loan was addressed.

"We are still very well capitalized, and we are still very strong," she said. "We don't do any risky loans; we don't have long-term mortgages out there or anything like that. So we still consider ourselves very strong."

Deposit accounts of federally-insured credit unions are insured up to $250,000 by the National Credit Union Administration. Delinquencies, repossessions and foreclosures don't necessarily mean a credit union is in danger of failing, because an institution can hedge its risk with strong reserves, loan loss provision and a solid base of capital.

But delinquencies are an important consideration, said Tyler Grodi, vice president of finance and chief financial officer at Black Hills Federal Credit Union.

"It's one part of the risk factor, but with what's going on out there now, I think it's a good way to look at the health of a credit union," he said.

Although the numbers may be small by some standards, many of the troubled credit unions are small and mid-sized institutions for this area, with assets ranging between $10 million and $73 million. In comparison, Black Hills Federal Credit Union's network of locations in the area holds assets worth more than $765 million.

The large credit union saw a 20 percent climb in the amount of loans past due 60 days, foreclosed real estate and repossessed property.

But while the credit unions in the Black Hills saw more seriously overdue loans, a credit union association representative said the financial institutions are doing well.

"The overall health of the credit unions in the Dakotas is strong," said Tony Richards, president of Mid-America Credit Union Association, which represents credit unions in North and South Dakota.

Med5 Federal Credit Union is in the best shape of the Black Hills area credit unions, according to the credit union association data. That credit union, formerly known as Rapid City Medical Federal Credit Union, reduced the amount of seriously overdue loans from the same time last year. United Methodist First Choice Credit Union was the only other credit union to accomplish that.

Contact Jeremy Fugleberg at 394-8421 or Jeremy.fugleberg@rapidcityjournal.com