Alabama's top credit union regulator said he will lift the year-old conservatorship of the $184 million Mutual Savings Credit Union now that the Birmingham CU has restored profitability and fixed its balance sheet.
In a statement, Glenn T. Latham, the state's CU administrator, said Mutual had posted a $322,000 profit in the first quarter. The regulator had seized the CU last July on allegations that it mismanaged its loan portfolio and was overextended. The CU's former leaders later challenged the allegations in county court.
"I am confident that the structure has been created which will enable MSCU to compete in today's market arena," said Latham in releasing the conservatorship effective July 31.
In overseeing Mutual, Latham last October hired Douglas Key, as a new president/CEO, and brought in a new board though the Birmingham CU ended up 2009 with a $5.8 million loss. The CU also closed two branches and shed nine employees,
Latham, who at one point was harshly criticized by the leadership of the Alabama Credit Union League for allegedly acting prematurely by ousting the former board and its CEO, Dale Dalbey, said in a July 12 statement that MSCU "has made great strides in recovering from a challenging balance sheet."
Latham said originally it was thought the conservatorship might be lifted in 18 months but "management and staff have worked diligently to make the necessary changes to grow soundly and successfully."
Among Mutual Savings' five new board members is Anthony Robinson, lending protection manager of CUNA Mutual Group, who was named to the supervisory committee.