Arrowhead Central Credit Union (San Bernardino, CA) emerged from conservatorship almost 3 years after NCUA assumed control of the credit union. NCUA placed Arrowhead Central Credit Union into conservatorship on June 25, 2010. Arrowhead Central CU is the first credit union since 2007 to emerge from NCUA conservatorship.
Read NCUA's press release.
Take a look at their assets on 12-2007. It is $1 Billion & Net Worth was 9.63% or $98,338,792.
ReplyDeleteNow look a their assets on 12-2013. It is $700 Million & Net Worth 10.53% or $63,265,840
They lost $35,072,952 in Net Worth! Six years later their net worth is only 0.90% stronger. The NCUA feels shrinking your way to success is commendable. They call this an extraordinary success story. Only in their own minds and with their spin on it. In addition in their press release they pointed out that "Arrowhead provided essential financial services for more than 100,000 ethnically diverse members". This is a political spin. It does not have any relation to the so called recovery.
The $300 Million left Arrowhead and can be found at the BANK. Good Job NCUA. CU Assets DOWN. Bank Assets UP. The NCUA calls this extraordinary success. I call it: SHRINKING YOUR WAY TO SUCCESS. The NCUA is a legend in their own mind.
ReplyDeleteNot just saved, but saved at apparently no cost of any kind to the rest of us credit unions. Wow.
ReplyDeleteWhats their TDR situation?
ReplyDeleteTake a look at fee income of distressed credit unions such a/head, az fed, miracle nisland.
ReplyDeleteThen look at their troubled debt restr.
Theyre on life support of fees and kick the can.
There are plenty of others.
Tick tock.
This is a terrible story.
ReplyDelete"return to the members".
Good Debbie.
Now maybe the "member/owners" will pay themselves better than 19 bps on shares and reduce what they charge themselves on fees (criminally at 3.40, down from 4 for the past few years).
Or, maybe, the member/owner model is theoretical?