SAN BERNARDINO, Calif. – Arrowhead Central CU, the one-time $1.1 billion credit union that teetered near failure when it was taken over by regulators two years ago, reported strong first quarter earnings and a return to the well-capitalized level, NCUA said this morning.
Arrowhead, whose net worth plunged below the critical 3% level at year-end 2010 following $80 million in losses the prior three years, reported a $6.9 million net for the first quarter of 2012, boosting its net worth near 7%. In addition, assets grew by a strong 8.4%, to $715 million at March 31.
The first quarter financials indicate a further strengthening of the prominent California credit union giant, after a $25 million net for 2011, indicating the credit unions is ready to be returned to its members.
NCUA took Arrowhead under conservatorship in June 2010, saying it couldn’t believe the financials being reported by Arrowhead management, and removed the senior management and board. The credit union had lost $80 million from 2008 through 2010 and its net worth level to just 2.8%, amid the southern California real estate bust that plunged most of the region’s credit unions into the red.
Arrowhead is one of three credit union giants being run by NCUA under conservatorship, along with Texans CU and Telesis Community CU.
