Thursday, April 23, 2015

Montgomery County CU Conserved (Updated)

The Superintendent of the Ohio Division of Financial Institutions today placed Montgomery County Credit Union, Inc., located in Dayton, Ohio, into conservatorship and appointed the National Credit Union Administration (NCUA) as agent for the conservator.

The Ohio Division of Financial Institutions wrote:

"Over the last several years, the Division has been working closely with the credit union in order to prevent
its financial condition from deteriorating. Unfortunately, certain safety and soundness concerns were not resolved in a timely fashion, and it became necessary for the Division to take action to protect the assets of the credit union for members, depositors and creditors."

Montgomery County Credit Union has reported losses of $393,139 and $380,685 for 2013 and 2014, respectively. In addition, the delinquency ratio for the credit union rose during the second half of 2014 from 0.69 percent to 2.53 percent.

According to the Dayton Daily News, "[i]n 2013, the credit union was investigated for allegations of poor management and mishandled money that was found during an ongoing audit. The board of directors of Montgomery County Credit Union Inc. told members that the problems led to an approximately $1.3 million net loss in 2012.

Montgomery County Credit Union, Inc., is a federally insured, state-chartered credit union with 6,605 members and $27.3 million in assets, according to the credit union’s most recent Call Report.

Go to the Ohio Division of Financial Institutions website to read the press release.

Read the NCUA press release.

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