Wisconsin Credit Union Under Investigation
Wisconsin’s Department of Financial Institutions said Monday it is investigating alleged substantial irregularities at the $28 million Oshkosh Central Credit Union. The investigation prompted the suspension of two of its employees last week, said George Althoff, a DFIspokesperson.
Althoff confirmed a local media report that the irregularities, uncovered recently during a routine examination by DFI auditors, involve a substantial amount of money.
In an interview with CU Times, Althoff would not specify the amount of funds involved or identify the employees suspended by Oshkosh Central CU board of directors because the state’s investigation is still underway.
“We have steered clear of releasing anything specifically,” he said.
A call and an email to credit union’s Oshkosh office seeking comment were not immediately returned Monday.
The 3,472-member credit union has about eight employees and two branches.
Though NCUA financial performance reports show the credit union had a net worth of10%, it is below peer average of12%. However, Oshkosh Central CU also posted lower than peer averages in return on average assets (0.03%v.0.20%), gross income (3.81%v.4.42%), yield on average loans (4.15%v.6.10%) and net interest margin (2.82%v.3.06%).
While the cooperative’s total loans slid slightly from $20.6 million in 2009 to $20.4 million in 2013, its loan income substantially dropped from $1.2 million in 2009 to $847,000 in 2013, according to NCUA financial performance reports.
In 2009 and 2010, Oshkosh Central CU had net income gains of $74,816 and $21,351, respectively, but also posted net losses of $41,034 in 2011 and $327,375 in 2012, NCUA financial performance reports show.
Last year the credit union recorded a net gain of $8,493. It also posted a net gain of $35,517 by the end of first quarter of this year, according to NCUA financial performance reports.
The NCUA, which insures the credit union’s accounts for up to $250,000 each, declined to comment when reached Monday.