Credit union open, operating and serving members; Accounts federally insured up to $250,000
December 17, 2010 – The National Credit Union Administration
(NCUA) today assumed control of operations at AEA Federal Credit Union of Yuma,
Arizona. NCUA’s 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
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
The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator
when necessary to conserve the assets of a federally insured credit union and protect
members’ interests or protect the National Credit Union Share Insurance Fund.