ALEXANDRIA, Va. (5/27/13)--Last week's announcement that control of the once-conserved Arrowhead Central CU has been returned to its members "is a positive step for the credit union, and a positive sign of the continued improvements in the economy and the credit union system," Credit Union National Association President/CEO Bill Cheney said.
The National Credit Union Administration made the announcement on Friday. Arrowhead is the first credit union since 2007 to emerge from conservatorship, the NCUA noted.
The NCUA took the 116,000 member, $755 million-in-assets credit union into conservatorship in June 2010. At that time, Arrowhead's net worth ratio had fallen to 3%. Then-CEO Larry Sharp and three other senior-level employees were replaced by the agency due to the credit union's declining financial condition.
"From day one, we were dedicated to restoring sound operations and safeguarding members' hard-earned money," NCUA Chairman Debbie Matz said.
The agency said NCUA staff, a new leadership team, and a 10-member advisory board worked together to strengthen Arrowhead's loan underwriting standards, control costs and restore net worth.
The credit union last week reported a net worth ratio of 10.5%, quarterly net income of $5.6 million, and membership of more than 116,000, the NCUA said.
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