Church-Based Michigan Credit Union Closed, Liquidated
The Michigan Office of Financial and Insurance Regulation Tuesday liquidated the $168,865 Amez United Credit Union of Detroit and appointed the NCUA as liquidating agent.
OFIR made the decision to liquidate the 158-member Amez United and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations. It is the second federally insured credit union liquidation in 2013.
Amez reported a net profit of $1,153 for 2012 and also turned a profit last year. The credit union had nearly 16% net worth as of 2012 year-end, and it’s a good thing, because it also reported nearly 16% delinquent loans during that period.
Loan quality was an issue, with delinquencies as high as 35.42% as of fourth quarter 2011 and charge offs running 25.80% in first quarter 2012. However, Amez had credited back previous charge offs during the third and fourth quarter 2012.
Originally chartered in 1961, Amez United Credit Union served registered members of the churches in the Detroit district of the Michigan Conference of the African Methodist Episcopal Zion Church.
Members’ deposits are federally insured by the NCUSIF, and the NCUA said its Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the credit union within one week.