SAN BERNARDINO, Calif.—NCUA this morning said it has returned control of Arrowhead Central Credit Union to its members. The agency, along with the California Department of Financial Institutions, has been operating the credit union under conservatorship since June 2010.
At the time NCUA took over Arrowhead Central, the then $1-billion CU had seen net worth decline to 3% and losses, most stemming from the sharp economic decline in California's Inland Empire, would total $4 million in 2010, following a $47 million loss in 2009. The losses led to the closure of eight branches and the sale of another four branches to Alaska USA FCU in 2010.
Capital today is at 10.5%, in part due to a reduction in assets to $755 million. The 116,000-member Arrowhead Central most recently reported quarterly net income of $5.6 million.
"This is an extraordinary success story resulting from an extraordinary effort," said NCUA Board Chairman Debbie Matz. "When the credit union was on the brink of failing in June of 2010, NCUA, working with the California Department of Financial Institutions, placed Arrowhead into conservatorship. From day one, we were dedicated to restoring sound operations and safeguarding members' hard-earned money."
While operated under conservatorship NCUA brought in a new leadership team and an advisory board of 10 volunteers. Arrowhead Central is the first credit union since 2007 to emerge from NCUA conservatorship, according to the agency.
