Tucson-area banks, credit unions strong as pandemic lingers | Business News

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Hughes Federal Credit Union was named one of Forbes’ Arizona Best-in-State Banks and Credit Unions for the second year running.

courtesy Hughes Federal Credit Union

Banks and credit unions across southern Arizona and across the country remained strong in the second quarter, with many banks scaling back the large loan loss reserves they had built in the face of the pandemic, according to the latest report from Florida’s Bauer Financial.

Southern Arizona banks and credit unions maintained their “Star” ratings on Bauer for the second quarter through June 30, with the top rated four stars (excellent) or five stars (superior) in the closely watched Bauer report were rated.

A major bank operating in southern Arizona, BBVA USA, posted a net loss of $ 652 million in the second quarter after posting a net loss of $ 1.9 billion for full year 2020 for impairment related losses the COVID-19 pandemic.

But the BBVA kept its five-star farmer rating with strong cash reserves.

Great Western Bank posted a loss of $ 671 million last year after taking more than $ 700 million in COVID-19-related charges, but the bank reported revenues of approximately $ 61 million in the second quarter of 2021 -Dollar.

Most US banks were able to reverse losses related to huge loan loss reserves they had built up last year when an expected onslaught of loan defaults fizzled out, Bauer said.

Among local banks, Commerce Bank of Arizona maintained its four-star Bauer rating and posted profits of $ 945,000 in the second quarter, after posting net income of $ 2.9 million last year .

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