As part of its cost-cutting over the last year, ailing Arrowhead Central Credit Union of California has cut its staff by a fifth to 400 and has shrunk its loan portfolio "way down" in three areas-autos, home equity and RVs, said Larry Sharp, president/CEO.
Commenting on the financial condition of the CU as it seeks to strengthen net worth by selling five branches to Alaska USA FCU, Sharp said the last few months have seen "the right things happen for us" in a return to profitability.
The restructuring, including the sale of a small insurance firm "have put the credit union on a more mature footing," said Sharp, noting that in dealing with the NCUA "we have spoken out when we needed to."
Meanwhile, Dan McCue, senior vice president-marketing at Alaska USA FCU, said negotiations on the five branch sale "have been directly with Arrowhead" and not with NCUA.
The Anchorage CU's penetration into the High Desert region of Southern California remains a fulfillment of what it started when it took over two troubled Victorville, Calif. area CUs under NCUA scrutiny. He said he expects Alaska USA will complete the Arrowhead branch turnover in the next 60 to 120 days.
Alaska USA currently serves 390,000 members worldwide, including nearly 30,000 in California. It has 57 branches in 32 communities in Alaska, Washington and California.
