The $700 million Arrowhead Credit Union, still under NCUA control after its June 2010 conservatorship, reported 10.53% net worth as of 2012 year end, the NCUA said Monday.
That marks a 324 basis points improvement from the same period in 2011 for the San Bernardino, Calif., credit union.
Arrowhead also closed out 2012 with $25.5 million in net income.
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As net worth has increased, loan quality has improved. Delinquencies as of Dec. 31 stood at 1.80% of total loans, and charge offs were 2.27%. That compares to year-end 2011, when delinquencies were 2.46% and charge offs were 4.41%, NCUA figures showed.
In fact, Arrowhead's revenue-generating numbers are much higher than its peers. Peer averages aren't yet available for fourth quarter 2012, but compared to third quarter peer numbers, Arrowhead's ROA was four times higher than peers, driven by high loan yields and non-interest income.
"Things are moving in the right direction," said Jane A. Walters, NCUA Region II director and agent for the conservator. "We still have more to do, but everyone involved should feel a sense of satisfaction with what we've been able to accomplish so far. Arrowhead has maintained a strong community presence, and we've expanded products and improved service."
NCUA placed Arrowhead into conservatorship in June 2010 in a controversial move that was opposed by former President/CEO Larry Sharp, who was removed from his post by the federal regulator.
Former California Credit Union League President/CEO Dave Chatfield called the NCUA's actions premature, and said the NCUA seized the credit union because it "had an axe to grind" with Sharp.
The NCUA did not respond Monday to the question of when it plans to remove Arrowhead from conservatorship.
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