The NCUA said Friday it has released the $755 million ArrowheadCentral Credit Union from conservatorship after nearly three years, marking the firsttime a credit union has done so since 2007.

A 10-person NCUA-recruited advisory board is now serving as theSan Bernardino, Calif., credit union's new Board of Directors andSupervisory Committee.

NCUA Public Affairs Specialist John Fairbanks said he could notname the board members because it's the credit union's decision tomake them public.

Arrowhead Vice President of Marketing Emily Friesen saidArrowhead would likely make that information public, but was notable to immediately provide a list of names.

The group conducted its first board meeting on Thursday. Currentfinancials reported to the new board include a net worth ratio of10.5%, quarterly net income of $5.6 million, and membership of morethan 116,000.

“Today Arrowhead Credit Union has shown its members that, justlike them, we are resilient. Our most important role is providingour members with excellent service, and that will continue tomorrowjust as it did yesterday,” Darin Woinarowicz, Arrowheadpresident/CEO, said in a statement.

“This is an extraordinary success story resulting from anextraordinary effort,” said NCUA Board Chairman Debbie Matz in itsstatement.

“When the credit union was on the brink of failing in June 2010,the NCUA, working with the California Department of FinancialInstitutions, placed Arrowhead into conservatorship. From day one,we were dedicated to restoring sound operations and safeguardingmembers' hard-earned money.”

The NCUA said when it took control of Arrowhead, the creditunion's net worth ratio was down to 3.0% and falling fast. Thecredit union was on pace to lose nearly $4 million in 2010, theregulator said.

Since then, Matz said, “NCUA staff, a new leadership team, andour Advisory Board of 10 dedicated volunteers did a remarkable jobgetting Arrowhead on the path toward recovery.”

Matz said that involved focusing on Arrowhead's core business,strengthening loan underwriting, controlling costs and steadilyfollowing the NCUA-approved Net Worth Restoration Plan.

“This historic success story was made possible thanks to yearsof tireless, collaborative efforts,” Matz concluded. “NCUA staff,the California Department of Financial Institutions, Arrowhead'sinterim and current management teams and staff, the new Board ofDirectors, and members never wavered in their commitment to savethis credit union. Together, we pulled Arrowhead from the brink ofinsolvency to become a strong credit union again, providingessential financial services for its community.”

Former President/CEO Larry Sharp, an outspoken NCUA critic whowas ousted along with the board in the June30, 2010 conservatorship, had objected to the intervention and had the support of someindustry leaders. He admitted to Credit Union Times thatArrowhead was struggling after the Inland Empire region sufferedmajor job losses and home values plummeted; however, he said thecredit union was on the road to recovery. The NCUA said Sharp'sperformance projections were too optimistic.

Arrowhead, established in 1949, is a federally insured,state-chartered credit union that operates 11 branches and said itis the largest credit union in California's Inland Empire.Membership is open to individuals and their family members wholive, work, worship or attend school in San Bernardino andRiverside counties.