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.