The once-failed $183 million Mutual Savings Credit Union of Birmingham, Ala. is on the fast track to recovery, said President/CEO Douglas Key.

The Alabama CU, which still remains under state conservatorship, expects to make a profit of about $325,000 for the first three months of 2010 after a $5 million loss in 2009.

"We've been diligent about curbing our expenses, cutting our losses and have done our best to maximize our earnings," said Key, a Birmingham attorney who was picked as CEO of Mutual by Alabama's top CU regulator, Glenn T. Latham who ousted the former management and board.

In seizing Mutual last July, Latham said Dale Dalbey, its president/CEO, and directors had allegedly mismanaged the CU, all of which figured in a court suit challenging and refuting the assertions that was settled out of court last January.

Key said he expects Mutual to pull out of conservatorship "by mid-year." Since his hiring, the CU has closed two branches, trimmed the staff and made other changes to restore the balance sheet coupled "with an improving economic picture in our community," said Key.

Key said also he remains under state contract and expects to stay on the job for an indefinite period.