Credit union’s numbers disputed
Rebecca U. Cho, Staff Writer
Posted: 06/30/2010 04:13:51 PM PDT
Arrowhead Credit Union reported faulty financial numbers in March, months before last week’s takeover by federal regulators, the government said Wednesday.
“Arrowhead Credit Union posted inaccurate financial data in its March 2010 Financial Performance Report, specifically regarding losses in the loan portfolio,” said John McKechnie, a spokesman for the National Credit Union Administration, the federal regulators for credit unions, in an e-mail. “The credit union presented a safety and soundness concern, necessitating last week’s conservatorship. NCUA took the action to preserve credit union member assets and ensure continued service to members.”
San Bernardino-based Arrowhead reported in March $2.6million in profits for the year and $20.1million in delinquent loans. The government placed Arrowhead in a conservatorship over the weekend. The Credit Union Times first reported the NCUA’s position on Arrowhead’s financial reporting.
Kay Woods, appointed by the NCUA as Arrowhead’s interim chief executive officer, said through an Arrowhead spokeswoman: “NCUA is our board and they have commented.”
The NCUA may have held a different opinion on some Arrowhead numbers, which does not mean management fudged numbers, said Bill Cheney, president of the California and Nevada Credit Union Leagues.
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