AEA FCU Receives $20 Million Subordinated Note

January 27, 2012 - CU Times - By Michelle A. Samaad

According to its latest NCUA Call Report data, AEA Federal Credit Union has received a $20 million subordinated note.

The liability, shares and equity page of the report dated Jan. 27, showed the note was deposited in December 2011 and includes unsecured secondary capital. Subtracting the note from AEA’s balance sheet appears to push its net worth to negative 6.6%.

The NCUA placed the $230 million, 42,000-member AEA in conservatorship in December 2010 due to inadequate capital, insufficient earnings and a financially troubled loan portfolio, the agency said at the time.

William Liddle, a former lending vice president at the credit union in Yuma, Ariz., is currently on trial to face charges on an alleged $1 million business loan kickback scheme.

Liddle worked at AEA from November 2004 to December 2009 and approved more than $25 million in business loans during his tenure there.

As of August 2011, AEA had posted a year to date net income of $2.2 million, according to the NCUA. The regulator touted a number of improvements including streamlined operations, improved facility management practices, and positive progress in business loan delinquency.