NCUA Takes Over Conserved $348 Million Huron River Area CU
ALEXANDRIA, Va. -- Expert staff hired by NCUA is now managing Huron River Area Credit Union after the credit union was placed into conservatorship Feb. 16.
The State of Michigan Office of Financial and Insurance Services appointed NCUA as agent for the conservator of the $348 million state-chartered, federally insured credit union serving individuals working primarily in the Ann Arbor, Mich. area. NCUA directed inquiries to the Michigan OFIS; a call for details of the decision to place the credit union into conservatorship was not returned.
CUNA Chief Economist Bill Hampel said that nothing from the credit union's financial reports really jumped out at him as to why it was in trouble. However, there are reasons aside from financial ones that a credit union could be conserved, though the credit union's delinquencies were higher than its peers.
Its capital did decline, but was still healthy, dropping from 14.19% at year-end 2005 to 11.46% as of September 2006.
NCUA is running the credit union with the goal of continuing service uninterrupted and ensuring a safe, sound credit union operation for its 39,000 members. The agency stated that member accounts are federally insured up to at least $100,000 per account by the NCUSIF.