CSU San Bernardino has hired as its new vice president for university advancement a local credit union CEO who was ousted from that position as part of a federal takeover a few weeks ago.
After 27 years as president and CEO of the San Bernardino-based Arrowhead Credit Union, Larry Sharp was dismissed as the bank's chief in mid-July. This comes a couple weeks after the National Credit Union Administration seized the bank June 25, the Inland Valley Daily Bulletin reported. Sharp was one of several of the credit union's top executives to be let go.
On Sept. 1, Sharp will step into a new role overseeing CSU San Bernardino’s University Advancement Division, which conducts the college's fundraising activities, along with alumni and public affairs. The job is a two-year appointment, according to the university's press release.
In a prepared statement, the university president said that despite the federal agency's decision to remove Sharp from Arrowhead's leadership, Sharp was a pillar of the community whose skills would be put to good use at the university.
“While recent developments at Arrowhead Credit Union, which grew out of the deep recession that severely damaged the Inland Empire’s economy, have been very unfortunate, the university will benefit extraordinarily by the skills and perspectives that Larry has developed over his outstanding career,” CSU San Bernardino President Albert Karnig said.
Sharp is no stranger to university philanthropy and business. An MBA graduate of CSU San Bernardino, he has served on the university's Foundation Board of Governors, the President's Advisory Council and several other university boards and committees.
The federal takeover of Arrowhead Credit Union came as a shock to local business observers because the nonprofit had reported gains in recent months. The credit union reported a net income of $3.7 million in April and fourth quarter profits of $1.7 million, according to the Inland Valley Daily Bulletin.
These reported improvements came after the bank had suffered major losses in the past two years. The credit union had tried to remedy the situation by laying off employees, selling several branches, renegotiating leases, and getting rid of 401(k) contributions, merit pay and bonuses.
But a new report issued July 22 by NCUA says the bank's financial picture was actually less rosy than its managers had reported. A press release from the federal agency said the credit union was "significantly undercapitalized."
According to the regulators, the bank had not properly accounted for its loan losses and therefore had a year-to-date loss of $1.4 million.
"Arrowhead Central had previously posted inaccurate information that distorted the true financial condition of the institution," the report states.
The federal regulators' report does not name names or speculate about how or why the former managers misstated financial information. A spokesman for the agency told reporters he "could not guess whether Arrowhead's prior managers were pumping the credit union's numbers."