A.E.A. FCU Placed into Conservatorship

NCUA announced that A.E.A. FCU of Yuma, Ariz. was placed into conservatorship.

A.E.A. Federal Credit Union was placed into conservatorship due to declining financial condition. The credit union was significantly undercapitalized with a net worth ratio of 2 percent as of September 2010.

NCUA cited that the credit union has earnings insufficient to enable it to continue under present management. The credit union reported a 2009 loss of almost $25.9 million and a year-to-date loss of nearly $4.7 million.

As of September 2010, the credit union reported that 19.12 percent of its loans were 60 days or more past due. The credit union’s difficulties stemmed from problems in its commercial loan portfolio, where $45.5 million in business loans were 60 days or more past due. This translates into 64.27 percent of its business loans being delinquent.

Recently, Bill Liddle, who formerly managed AEA's business loan department, his wife and local businessman Frank Ruiz were indicted by a grand jury in an alleged kickback scheme related to business loans made to Ruiz.