Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
AEA FCU continues to improve NCUA reports
ALEXANDRIA, Va. (5/4/12)--The financial condition of AEA FCU, Yuma, Ariz., continues to improve under National Credit Union Administration (NCUA) conservatorship, the agency reported, noting that the credit union posted $839,096 in income in the first quarter of 2012.

Total assets held by the credit union stood at $245.1 million at the end of the quarter, and the credit union's net worth also improved by 18 basis points during the quarter.

The NCUA placed the credit union into conservatorship in late December, saying that it was not adequately capitalized under standards set forth in the Federal Credit Union Act and had earnings "insufficient to enable it to continue under present management." The agency at that time said the credit union's difficulties sprang from problems in its loan portfolio.

The loan difficulties were caused by a $50 million fraudulent business loan scheme. Yuma businessman Frank Ruiz; William Liddle, AEA's former vice president of lending; and Liddle's wife, Rhonda Liddle, allegedly took part in the scheme. Ruiz was recently sentenced to 24 months in prison and three years' supervision, and Liddle and his wife are awaiting sentencing.

The credit union recently completed an organization-wide rebranding effort, improved its credit and debit card services, and has enhanced its website.

"Our goal for 2012 is to continue the efforts to transition AEA back to a financially strong credit union," said Elizabeth Whitehead, NCUA Region V director. During the conservatorship, the agency has reduced the credit union's expenses, streamlined operations, and "began the process of returning AEA to the fundamental credit union business model," Whitehead said, adding that the NCUA has seen significant progress in all of these areas.

For the full NCUA release, use the resource link.
Other Resources

RSS





print
News Now LiveWire
Sony hack linked to N. Korea, says U.S.intelligence via @nytimes http://t.co/fE3PtMgEFz
12 hours ago
.@CUNAMutualGroup Klewin shares final thoughts, forecast on lending regulations with @cumagazine before retiring http://t.co/v78QY3QwqB
15 hours ago
Current @CUNA COO @JillTomalin promoted to deputy chief of staff
16 hours ago
#CU Effect:@ChartwayFCU 'branch of the future' 2 benefit members, staff. 2nd installment of new News Now series here:http://t.co/ImBY4nupEj
16 hours ago
U.K. regulators have given formal authorization for the @c_of_e to form a #creditunion.
16 hours ago