The Yuma, Ariz.-based, $229 million AEA FCU faces millions of dollars in bad loans and a relatively poor net worth ratio, according to its most recent Call Report from the NCUA.
The NCUA posted the Call Report just as the CU announced second-quarter progress with a year-to-date net income of $2.2 million following a $31 million loss last year. AEA FCU was placed under NCUA conservatorship in December 2010.
According to the Call Report, the CU’s net worth ratio is at negative 7.74%, a miniscule improvement from its first-quarter net worth ratio of negative 7.77% but still lower than in December 2010, when the number dropped from 2% to negative 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 totaled $32.6 million, $27.8 million of which are 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.
The NCUA, in an Aug. 2 release said, “Since December 2010, NCUA, the interim management team, AEA’s employees have worked to dramatically improve the credit union’s financial condition.”