SAN BERNARDINO, Calif.-NCUA, which took one-time $1.1 billion Arrowhead Central CU under conservatorship last month, last week terminated its long-time CEO Larry Sharp and three other top executives the agency had previously put on an unusual paid administrative leave after the regulatory takeover.
Beside Sharp, who ran Arrowhead since 1982, those terminated were Chief Financial Officer Daniel Marciante, SVP-Lending Gene Shabinaw, and SVP-Strategic Development Ray Messler.
The NCUA takeover of the 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 still left 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, but broke back into the black for the first quarter of $2.6 million.
Several analysts have claimed NCUA was too hasty in its takeover and that the financials had turned around, but the agency issued a statement that there were inaccuracies in the 5300s the credit union had filed (CU Journal, July 12).
