Two of NCUA's sand state conservatorships appear this week to be on positive but differing financial tracks.
Over the weekend, NCUA touted the second-quarter improvement of $11.3 million in profit for the $681 million Arrowhead Central Credit Union of San Bernardino, Calif., which was conserved in June 2010.
But media reports on another NCUA-run CU in Yuma, Ariz., the $309 AEA FCU, still show it struggling against a sea of delinquent loans, though it did report $1.3 million profit in the first quarter following its $31 million loss in 2010. It was conserved in December 2010. Second quarter reports were being awaited.
As for Arrowhead, the NCUA said it improved its net worth to 5.06%, up from 3.44% at Dec. 31, 2010.
"The trends are moving upward at an accelerated pace through continued focus on diligent expense management, operational efficiencies and improved lending results," said NCUA's Jan Walters, NCUA Region II Director. "We are very encouraged by the credit union's positive financial results."
Meanwhile, the Yuma Sun, citing Call Report data, said AEA charged off $17 million in the first quarter, part of a total of $31.8 million over a prior 15 months. In its story about "still bleeding red ink," AEA reportedly had $28.3 million in loan losses on its books "and in addition there are still $40 million in delinquent loans of 30 days or more past due."
The southern Arizona CU has long been in the media, rocked by fraud revelations including a $1 million kickback scheme involving local entrepreneurs.
One of them, Frank Ruiz, pled guilty to money laundering charges in June and is scheduled to be sentenced by a Phoenix judge Oct. 3.
Ruiz was convicted of paying kickbacks to an AEA vice president of business lending, also charged in the case, to obtain $22 million in loans to finance a Yuma kids' park and nightclub, both of which went bankrupt.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
