AEA’s Net Income Rises In Conservatorship
While operating under conservatorship, the $234 million AEA Federal Credit Union in Yuma, Ariz., posted year-end net income of $5.23 million for 2013, up from $3.15 million in the prior year.
The NCUA said AEA’s “strong commitment to member service” led to the credit union’s financial improvement.
AEA’s total assets increased by $3 million from 2012 and the net worth ratio improved by 70 basis points, ending the fourth quarter at 4.72 percent.
AEA, established in 1942, currently serves 41,000 members and operates five branches. Membership at AEA is open to individuals and their family members, who live, work, worship or attend school in Yuma or La Paz counties in Arizona.
In December 2010, the NCUA placed AEA into conservatorship due to its declining financial state, deriving from problems with its member business loan portfolio.
“We have again seen progress in many areas, resulting in the credit union’s positive performance in 2013,” said Elizabeth Whitehead, NCUA Region V director and agent for the conservator, on Thursday.
“Having previously reduced the expense structure, streamlined operations and introduced new products and services we continued the process of returning AEA to the core credit union business model through the introduction of a member-centric sales-through-service culture.”