WASHINGTON (12/21/15)--The National Credit Union Administration has handed the reins back to AEA FCU, Yuma, Ariz., which was placed into conservatorship back in December 2010.
AEA, the second credit union to climb out of NCUA conservatorship this year, revamped operations, improved lending controls, reduced expenses and stepped up service to its members under control of the NCUA.
Buoyed by stronger earnings, the credit union’s net-worth also increased over the last five years.
“Much of the credit for this success goes to the hard work of AEA’s leadership team, credit union staff and the loyal membership,” NCUA Chair Debbie Matz said. “Working collaboratively with the agency, they were able to bring AEA through a conservatorship, stabilize the credit union and continue providing services to members.”
Added Brian Mendivil, the credit union’s president/CEO: “This is an extraordinary success story for AEA, its membership and the communities we serve.”
The first credit union to emerge from conservatorship this year, Keys FCU, Key West, Fla., received control back from the NCUA in September. It was the first time a credit union had survived conservatorship since 2013.
Also announced on Friday, the NCUA said it liquidated Bethex FCU of Bronx, New York.
USAlliance FCU of Rye, N.Y., immediately assumed Bethex FCU's assets, member shares and most loans. USAlliance is a federally chartered credit union with a low-income credit union designation. It has 83,102 members and assets of $1.07 billion, according to the credit union’s most recent call report.
The new USAlliance members should experience no interruption in services, and the existing Bethex office will remain open. Members’ accounts remain insured by the National Credit Union Share Insurance Fund.
NCUA placed Bethex into conservatorship on Sept. 18. The regulator decided to liquidate Bethex and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own.
At the time of liquidation and subsequent purchase by USAlliance, Bethex served 5,824 members and had assets of $12.2 million, according to the credit union’s most recent call report. Chartered in 1970, Bethex FCU served various groups in New York City.
Bethex is the tenth federally insured credit union liquidation in 2015.