Regulators at the end of June seized the assets of Arrowhead Credit Union, one of the largest credit unions serving the Inland Empire region of southern California. Citing a “declining financial condition,” the seizure was part of an increased effort by federal officials to shore up institutions afflicted by the mortgage bust and the Feds to assessment of an institution’s solvency using mark to market accounting
John J McKechnie III, spokesperson for The National Credit Union Administration, said “We’re being more aggressive in our examination process. We want members to be sure that their credit union operations are safe and sound.” In a letter to its members, Jane A. Walters said, “Be assured NCUA’s actions will not affect the safety of your savings or the array of services to which you are accustomed.”
Arrowhead has $876 million in assets with over 24 branches across the Inland Empire. It was the second largest credit union to be seized by federal officials, following last year’s take over of the Eastern Financial Florida Credit Union, which was worth $1.6 billion.