Arrowhead CU Pierces The Black
SAN BERNARDINO, Calif. – NCUA said this afternoon that Arrowhead Central CU, the one-time $1 billion credit union run under NCUA conservatorship since last July, broke into the black for the first quarter for the first time in three years, to the tune of $3.9 million.
The first quarter net, which boosted Arrowhead’s net worth to 3.91%, from just 3.44% at year-end 2010, came after major cost-cutting and improvements in its loan portfolio, NCUA said. The improved net worth ratio was also helped by the continuing decline in assets, all the way to just $700 million at March 31.
“We’re making significant progress in rebuilding our financial condition to ensure that we will continue to be here for our members,” said Steve Becker, hired by NCUA to work-out the ailing credit union giant. “Our efforts to reduce expenses, to improve the service experience our members receive, and to rebuild net worth have combined to achieve strong signs of stabilizing and revitalizing Arrowhead Credit Union.”
Once one of the nation’s leading credit unions, Arrowhead ran up losses of $50 million over the past two years as the region ran up unemployment of 14%, leading to one of the highest foreclosure rates in the country.
Arrowhead is one of two troubled billion-dollar credit unions being run by NCUA, with last week’s takeover of Texans CU, the one-time $2 billion credit union.