BAKERSFIELD, Calif. – Troubled Kern Schools FCU revealed yesterday it has been operating under a supervisory agreement with NCUA requiring it to rebuild its capital.
The $1.7 billion credit union, which reported capital had fallen to 5.05% at mid-year putting in in NCUA’s undercapitalized category, said NCUA has given it 24 months to rebuild capital to 7%.
The confidential agreement with NCUA was disclosed yesterday by Vincent Rojas, the departing CEO, who is being succeeded by Steve Renock, the former president of CUNA Mutual Mortgage and more recently, executive vice president of SchoolsFirst FCU.
Kern Schools is one of a dozen troubled billion-dollar credit unions under supervisory agreements with NCUA. The credit union lost $24.3 million in 2008 and $30.9 million for th first six months of 2009.
