The NCUA today confirmed reports that seized $808 million Arrowhead Central Credit Union laid off 27 employees Friday.
Director of Congressional and Public Affairs John McKechnie said the affected staff worked operational and administration positions at the $808 million institution, and called it a decision required to "maintain service while protecting member assets."
Dismissed Arrowhead CEO Larry Sharp, who was not counted among the 27 released Friday, said he disputes the NCUA's decision to place the credit union into conservatorship. However, he said he will not challenge it legally.
Sharp said he reviewed the NCUA's amended June 30 financial reports, and said he doesn't think the regulator accounted for the sale of Arrowhead's branches to Alaska USA FCU. Further, had the NCUA not repudiated an agreement Sharp and his team had made with Alaska USA to sell some $77 million in loans, Arrowhead would have netted nearly $3 million.
Even using the NCUA's assumptions regarding loan performance and loan loss reserves, Sharp said Arrowhead would have been in the black as of June 30 had the NCUA included income received from Alaska USA.
"I don't agree with the numbers," he said.
