AEA FCU of Yuma, Ariz., which NCUA placed under conservatorship in December 2010, announced second quarter progress this week with a year-to-date net income of $2.2 million and total assets of $229 million following a $31 million loss last year.
But the CU's most recent Call Report from the NCUA tells a slightly different story.
AEA FCU's second-quarter Call Report displays a relatively poor net worth ratio and millions of dollars in bad loan debt. The CU's net worth ratio is at -7.74%, a miniscule improvement from its first quarter net worth ratio of -7.77% but still lower than in December 2010, when the number dropped from 2% to -7.63%.
The report shows a total of $19 million in charge-offs as of June 2011, bringing its total loan charge-off amount to $32.2 million for the entire year of 2010 and first two quarters of 2011.
Second quarter delinquent loans total $32.6 million, $27.8 million of which comprise loans that are 12 months or more past due. That's an increase from the first quarter's total of $31 million, $14.3 million of which pointed to loans at the 12 months past due mark.
The Call Report's figures reflect the CU's struggles over the past year, which involved numerous delinquent loans and a fraudulent kickback scheme that ultimately led to its NCUA conservatorship.
NCUA publicized positive financial growth at the CU, stating in an Aug. 2 press release, “Since December 2010, NCUA, the interim management team, AEA's employees have worked to dramatically improve the credit union's financial condition and maintain services for the credit union's 44,000 members.”
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
