Tuesday, May 5, 2020

Conserved Tennessee CU Is Insolvent as of March 31, 2020

At the end of the first quarter, Mid East Tennessee Community Credit Union (Decatur, TN) was insolvent.

The National Credit Union Administration placed the $10 million credit union into conservatorship on April 23, 2019.

The credit union's net worth was negative $134,539, as of March 31, 2020. It net worth ratio was minus 1.34 percent. The credit union has been critically undercapitalized based upon Call Report information since June 2019.

The credit union posted a loss of $154,819 for the first quarter of 2020, after recording a loss of almost $734 thousand for 2019.

The credit union reported that 3.55 percent of its loans were delinquent or $216,866 of loans were 60 days or more past due.

The credit union reported an annualized net charge-off rate of 10.11 percent for the first quarter, as net charge-offs were $169,853 for the first quarter of 2020. The credit union posted net charge-offs of almost $264 thousand for 2019.

NCUA in 2019 found that two former officials at the credit union had filed false Call Reports containing inaccurate financial information with the intent of manipulating the credit union's net worth ratio. Both individuals consented to orders of prohibition.

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