AEA FCU of Yuma, Ariz., which NCUA placed under conservatorship in December 2010, announced second quarter progress this week with a year-to-date net income of $2.2 million and total assets of $229 million following a $31 million loss last year.
But the CU’s most recent Call Report from the NCUA tells a slightly different story.
AEA FCU’s second-quarter Call Report displays a relatively poor net worth ratio and millions of dollars in bad loan debt. The CU’s net worth ratio is at -7.74%, a miniscule improvement from its first quarter net worth ratio of -7.77% but still lower than in December 2010, when the number dropped from 2% to -7.63%.
The report shows a total of $19 million in charge-offs as of June 2011, bringing its total loan charge-off amount to $32.2 million for the entire year of 2010 and first two quarters of 2011.
Second quarter delinquent loans total $32.6 million, $27.8 million of which comprise loans that are 12 months or more past due. That’s an increase from the first quarter’s total of $31 million, $14.3 million of which pointed to loans at the 12 months past due mark.
NCUA publicized positive financial growth at the CU, stating in an Aug. 2 press release, “Since December 2010, NCUA, the interim management team, AEA’s employees have worked to dramatically improve the credit union’s financial condition and maintain services for the credit union’s 44,000 members.”