Kern Schools FCU Says It Is Under NCUA Supervisory Agreement

Credit Union Journal 10-21-2009

BAKERSFIELD, Calif. – Troubled Kern Schools FCU revealed yesterday it has been operating under a supervisory agreement with NCUA requiring it to rebuild its capital.

The $1.7 billion credit union, which reported capital had fallen to 5.05% at mid-year putting in in NCUA’s undercapitalized category, said NCUA has given it 24 months to rebuild capital to 7%.

Kern Schools is one of a dozen troubled billion-dollar credit unions under supervisory agreements with NCUA. The credit union lost $24.3 million in 2008 and $30.9 million for th first six months of 2009.