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.

Posted by at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.