ALEXANDRIA, Va. – NCUA continues to shop for merger mates for two prominent credit unions taken over during the past year, California’s Arrowhead Central CU and Florida’s Keys FCU, even as the financial condition of both continued to deteriorate in the third quarter.
Arrowhead, a one-time $1 billion San Bernardino credit union taken over by NCUA in June, had another $2 million in loan losses in the third quarter, making a $3.8 million loss for the year, the agency reported yesterday. The net worth ratio for the troubled credit union continued to hover at the critically under-capitalized level at 3.25%, only because another $100 million of deposits were drained off in the third quarter. Arrowhead lost more than $47 million in 2009.
Keys FCU, a one-time $220 million credit union across the country in Key West, Fla., lost another $1.6 million in the third quarter, making total losses of $6.8 million for the year. Its net worth ratio continued to fall, to 2.37%. The credit union, taken over by NCUA in September 2009, had a $4.4 million loss for the year.
The two troubled credit unions are among a handful of large credit unions being run by NCUA under conservatorship, including the recent corporate failures, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU.
