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%.
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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 Call Report's figures reflect the CU's struggles over the past year, which involved numerous delinquent loans and a fraudulent kickback scheme that ultimately led to its NCUA conservatorship.
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."
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