Spokane-based Global Credit Union posted a net loss of $1.1 million for 2009, compared with a loss of $3.5 million in 2008. Though it pared its losses substantially, the credit union's loans, deposits, and assets all declined.

The credit union's total assets fell 4.2 percent to $350.5 million as of Dec. 31, compared with $365.9 million a year earlier, says Jack Fallis, Global's president and CEO.

Fallis attributes much of the decline in assets to a $2.4 million stabilization fee paid to the National Credit Union Share Insurance Fund (NCUSIF)—an expense the credit union didn't have at all in 2008. The NCUSIF is a government-backed fund that insures credit union members' deposits.

Global also increased its loan-loss provision by 63 percent to $7.6 million, up from $4.7 million a year earlier.

"2009 certainly was a challenging year for us and all financial institutions," Fallis says.

Global's total loans dipped 15 percent to $269 million as of year-end, compared with $318 million a year earlier.

"People have been paying down or refinancing their debt," Fallis says. "We haven't seen a tremendous demand for consumer auto loans and mortgages."

Global's total deposits were $314.1 million at year-end, down 1 percent from $318.4 million a year earlier.

Fallis says one possible reason for the decline in deposits in 2009 is that some members earlier had deposited money that they had taken out of the stock market, and last year started to withdraw some of their deposits to deploy assets into other investments.

Global paid members $5.1 million in interest and dividends in 2009, down from $8.4 million a year earlier.

Fallis says 2010 will be another challenging year for Global, with another likely NCUSIF stabilization fee and a probable additional increase in the credit union's loan-loss provision.

Global has more than 50,000 members and operates 10 branches in Washington, two in North Idaho, and three at U.S. military bases in Italy.