Matz Tells Success Story: First since ’07 to Emerge from NCUA Conservatorship
ALEXANDRIA, Va. (May 24, 2013) –The National Credit Union Administration (NCUA) yesterday returned control of the Arrowhead Central Credit Union to its members. The largest credit union in California’s Inland Empire became the first credit union since 2007 to emerge from NCUA conservatorship.
“This is an extraordinary success story resulting from an extraordinary effort,” said NCUA Board Chairman Debbie Matz, who will share her perspective in her Chairman’s Corner column in the June issue of The NCUA Report. “Arrowhead provided essential financial services for more than 100,000 ethnically diverse members. When the credit union was on the brink of failing in June of 2010, NCUA, working with the California Department of Financial Institutions, placed Arrowhead into conservatorship. From day one, we were dedicated to restoring sound operations and safeguarding members’ hard-earned money.”
When NCUA took control, Arrowhead’s net worth ratio was down to 3.0 percent and falling fast. The credit union was on pace to lose nearly $4 million in 2010.
Since then, Matz said, “NCUA staff, a new leadership team, and our Advisory Board of 10 dedicated volunteers did a remarkable job getting Arrowhead on the path toward recovery.”
This involved focusing on Arrowhead’s core business, strengthening loan underwriting, controlling costs, and steadily following the NCUA-approved Net Worth Restoration Plan.
After nearly three years of conservatorship, this month the NCUA Board voted to return control of Arrowhead back to its members. The NCUA-recruited advisory board is now Arrowhead’s new Board of Directors and Supervisory Committee. At their first Board meeting yesterday, Arrowhead reported a net worth ratio of 10.5 percent, quarterly net income of $5.6 million, and membership of more than 116,000.
“This historic success story was made possible thanks to years of tireless, collaborative efforts,” Matz concluded. “NCUA staff, the California Department of Financial Institutions, Arrowhead’s interim and current management teams and staff, the new Board of Directors, and members never wavered in their commitment to save this credit union. Together, we pulled Arrowhead from the brink of insolvency to become a strong credit union again, providing essential financial services for its community.”
Arrowhead Central Credit Union, established in 1949, is a federally insured, state-chartered credit union that operates 11 branches. With more than 116,000 members and nearly $755 million in assets, Arrowhead is the largest credit union in California’s Inland Empire. Membership at Arrowhead is open to individuals and their family members who live, work, worship or attend school in San Bernardino and Riverside counties in California. For more information, visit www.arrowheadcu.org.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of nearly 100
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.