Tuesday, February 19, 2013

Tiny Detroit-based CU Liquidated

The Michigan Office of Financial and Insurance Regulation (OFIR) today liquidated Amez United Credit Union of Detroit, Mich., and appointed the National Credit Union Administration (NCUA) as liquidating agent.

An OFIR examination found that AUCU was operating in an unsafe and unsound manner and insolvent. OFIR examiners found significant exposure to credit risk and the institution lacked appropriate capital reserves.

At the end of 2012, the credit union reported that 15.72 percent of its loans were 60 days or more past due. However, its regulatory filings noted that the credit union was well capitalized with a net worth ratio of 15.86 percent.

Originally chartered in 1961, Amez United Credit Union served registered members of the churches in the Detroit district of the Michigan Conference of the African Methodist Episcopal Zion Church. Amez United Credit Union had 158 members and assets of approximately $168,865, according to its most recent Call Report.

Amez United Credit Union is the second federally insured credit union liquidation in 2013 and the first Michigan credit union to be closed, since United Catholic Credit Union in August 2012.

Read OFIR press release.

Read NCUA's press release.

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