AEA Federal Credit Union, which operates under the conservatorship of the NCUA, reported improved financial results for the first quarter 2012.
The $245 million AEA of Yuma, Ariz., reported net income of $839,096 as of March 31. Though still critically undercapitalized and supported by a $20 million subordinated note, net worth improved during the first quarter by 18 basis points to 2.85%, the NCUA said Thursday.
Loan quality has improved to 6.8%, with delinquencies and charge offs falling from a high of 43.83% of loans during the first quarter of 2011. ROA took a dip to 1.41%, down from 2.77% as of September 30, 2011, but still vastly improved from a low of -9.77% as of year-end 2010.
“Our goal for 2012 is to continue the efforts to transition AEA back to a financially strong credit union,” said Elizabeth Whitehead, NCUA Region V director. “During the conservatorship, we reduced expenses, streamlined operations and began the process of returning AEA to the fundamental credit union business model. We see significant progress in all of these areas, and we are very encouraged by the credit union’s continued positive financial results.”
During the first quarter, AEA completed a number of projects as part of a rebranding effort. The Yuma credit union updated its website to enhance navigation, and introduced a new home banking website with next generation mobile/text banking, a new suite of checking accounts with a photo debit card option, and a member-centric direct auto lending platform.
Second quarter plans include release of an in-house Visa credit card program and joining the CO-OP ATM and shared branching networks.
The credit union failed as a result of insider loan fraud, for which a former vice president and his wife were found guilty. The two are scheduled to be sentenced later this month.