SAN BERNARDINO, Calif. – Arrowhead Central CU, the one-time $1 billion credit union being run by NCUA the past 15 months, has apparently turned the corner and is once again posting healthy financials.
Arrowhead not only posted a strong net of $8.6 million for the third quarter, even after a $1.6 million charge for the NCUA corporate assessment, but its declining asset base—all the way to $660 million—has enabled it to rebuild its net worth ratio to 5.9%, from a low of 3.3% last year.
For the first nine months of the year Arrowhead, which wracked up almost $50 million in losses for 2009 and 2010, posted a $19.9 million net and is on pace for a 40 basis points return-on-assets for the year.
NCUA, which took over the credit union in June 2010, declined to comment on the condition of Arrowhead or when it plans to turn it back to the members, saying the numbers stand for themselves.
Other once-troubled credit union giants are also reporting strong financials for the third quarter.
Florida’s Suncoast Schools FCU, which was one of ten NCUA special cases which lost $183 million for 2008 through 2009, reported a $2 million charge for NCUA’s corporate assessment pushed it into the red by $1.2 million for the third quarter, but it still had a positive net of $13.1 million and 6% net worth for the first nine months.
California’s Wescom Central CU, another NCUA special case, reported a $10.6 million net for the third quarter—even after $5 million NCUA charge, leaving it with positive income of $21.2 million for the first three quarters.
GTE FCU in Florida reported a slight $868,000 third quarter net, even after accruing $3.3 million for the corporate charge, leaving it $2.3 million in the black for the first nine months.
