Desert Valleys completes capital asset recovery

Desert Valleys Federal Credit Union announced that it has achieved a capital reserve percentage of 7.24 percent brought up from 3.48 percent in 2000.

According to Desert Valleys CEO Eric Bruen, House Resolution 1151 was passed to require credit unions to maintain a capital ratio of 7 percent or higher, or be subject to restrictions. These actions include heightened audit requirements, board and staff restrictions and strategic planning toward achieving the minimum capital threshold.

At the time the legislation went into effect, Desert Valleys (formerly Searles Lake Community Federal Credit Union) was put under the “prompt and corrective action regulations. A that time, the credit union was managing $13.2 million in assets.

During the period of recovery, Desert Valleys has not only improved its capital ratio, but has grown its assets to $41.5 million.

“The support and patience provided by the National Credit Union Association was critical,” said Bruen. “We had a good operating strategy and the credit union was growing. But with each growth spurt our capital would fall backwards. It has been a constant cat-and-mouse game for this credit union but we finally caught the mouse!”

Over the past four years, Desert Valleys has maintained an average annual growth rate of 8.76 percent while adding more than $1 million to its capital reserves.

“Our selection of ShareOne as a data processing partner was the key moment in reaching this achievement” said Bruen.

Since its core conversion in February 2015, the credit union has grown by more than $16 million in assets.

Desert Valleys is a not-for-profit financial cooperative committed to serving the Ridgecrest and Trona communities. Desert Valleys has served these communities since 1946 and proudly seeks to improve the lives of our 4,400 members.

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Story First Published: 2019-07-26