SAN BERNARDINO, Calif. NCUA on Friday reported Arrowhead Central CU, a one-time $1.1-billion credit union taken under conservatorship in June 2010, continues to rebound, earning net income of almost $7.3 million for the fourth quarter and $25.5 million for all of 2012.
Last year’s net is almost identical to the $25 million earned in 2011, but significantly better than the $80 million in losses racked up during the prior three years, which prompted the NCUA takeover.
The improved financials were related to a $3.9 million decrease in provision for loan losses last year, as well as declines in cost of funds and the NCUA corporate assessment, which was almost $1 million less in 2012 than it was in 2011. Cost of operations continued to fall last year, after the credit union pared branches and employees under NCUA conservatorship.
But storm clouds still remain for Arrowhead, as its assets declined in all four quarters of 2012, and the credit union still has negative $10.5 million of “other reserves” on its books. Also, Arrowhead’s loan portfolio shrunk by 13% last year, or more than $58 million.
Arrowhead’s assets were down to $700 million at year end.