NCUA Dismisses Larry Sharp, Rest of Arrowhead Central CUs Top Management
SAN BERNARDINO, Calif. – NCUA, which took one-time $1.1 billion Arrowhead Central CU under conservatorship last month, yesterday terminated its long-time CEO Larry Sharp and three other top executives put on an unusual paid administrative leave after the regulatory takeover.
Beside Sharp, who ran Arrowhead since 1982, those terminated yesterday were: chief financial officer Daniel Marciante, senior vice president of lending Gene Shabinaw, and senior vice president of strategic development Ray Messler.
The NCUA takeover of the troubled institution came the day before Arrowhead was scheduled to complete the sale of four branches to Alaska USA FCU for roughly $7 million. However, the additional capital would still leave the now-$875 million credit union with just a 3.4% net worth ratio, considered critically undercapitalized under NCUA’s minimum capital rules, known as prompt corrective action, or PCA.
Arrowhead lost 28.6 million in 2008 and $47.1 million in 2009, even while breaking into the black for the first quarter of $2.6 million.