Health One Credit Union Conserved
The NCUA is now in charge of day-to-day operations at the $18 million Health One Credit Union in Detroit, which was placed into conservatorship Friday by the Michigan Department of Insurance and Financial Services.
The NCUA said the state-chartered, federally insured credit union was conserved due to the “recent discovery of unsafe and unsound practices.
“While continuing normal member services, the two agencies will work to resolve issues affecting the credit union’s safety and soundness,” the NCUA said in a release. “Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments and use shares.”
Health One Credit Union’s net worth fell from 9.78% in March 2013 to 3.90% in March 2014, according to NCUA's most recent Financial Performance Report.
Delinquent loans increased from .67% to 7.97% during the same period.
Net-charge offs stood at 1.89% in March of 2013 and fell to 1.06% a year later.
The NCUA share insurance fund will continue to insure individual accounts at up to $250,000.
Health One, chartered in 1957, has 3,882 members and serves residents of Macomb, Oakland, Washtenaw and Wayne counties in Michigan, as well as other select groups. In addition to its Detroit headquarters, Health One has a branch in Cleveland.