The $876 million Arrowhead Central Credit Union was seized this afternoon by the NCUA and placed into conservatorship.
"Arrowhead Central Credit Union was placed into conservatorship due to declining financial condition," an NCUA release said. "The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses."
NCUA Spokesman John McKechnie said all volunteers were removed from their positions upon conservatorship. However, CEO Larry Sharp, Chief Financial Officer Daniel Marcicente, Senior Vice President of Lending Gene Shabinaw and Senior Vice President of Strategic Development Ray Messler were placed on paid administrative leave.
The San Bernardino, Calif.-based cooperative has been significantly undercapitalized since Sept. 2009, and reported 3.36% net worth as of March 31, 2010. It ended 2009 with a $47 million net loss, but had posted a $2.6 million profit during first quarter 2010.
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