by STAFF WRITER Published December 18, 2010 Credit Unions Online
NCUA has assumed control of operations at AEA Federal Credit Union of Yuma, Arizona. NCUA says their goal is to continue credit union service to the members and ensure safe and sound credit union operations.
Member deposits are safe. Their accounts are insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.
Service to AEA’s 49,130 members continues uninterrupted. Members can continue to conduct normal financial transactions - deposit and access funds, make loan payments and use share drafts. AEA Federal Credit Union is a full service credit union, with assets of $309 million, that provides financial service to people residing in Yuma and La Paz Counties, Arizona.
AEA Federal Credit Union was placed into conservatorship due to declining financial condition. The credit union is not adequately capitalized under standards set forth in the Federal Credit Act, and has earnings insufficient to enable it to continue under present management. The credit union’s difficulties stemmed from problems in its loan portfolio.
The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.