Friday, September 6, 2013

Craftsman CU Closed

The Michigan Department of Insurance and Financial Services today liquidated Craftsman Credit Union of Detroit and appointed the National Credit Union Administration (NCUA) as liquidating agent. Security Credit Union of Flint, Mich., immediately assumed Craftsman’s members and deposits, as well as 50 percent of its loans.

The Michigan Department of Insurance and Financial Services made the decision to liquidate Craftsman Credit Union and discontinue its operations after determining the state-chartered credit union was insolvent and had no prospect for restoring viable operations.

As of June 30th, the credit union was critically undercapitalized with a net worth ratio of 1.46 percent. The credit union reported that 6.54 percent of its loans were 60 days or more past due at the end of the second quarter of 2013. In addition, the credit union reported a loss of almost $2.1 million for the first six months of 2013.

At the time of liquidation and subsequent purchase and assumption by Security Credit Union, Craftsman Credit Union served 6,403 members and had assets of $24.1 million, according to its most recent Call Report.

This is the 12th credit union to be liquidated in 2013.

Read the press release.

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