The $184 million Mutual Savings Credit Union of Birmingham has emerged from state conservatorship by restoring profitability and fixing its balance sheet, according to the Alabama regulator Glenn T. Latham.
In lifting the conservator order, Latham said the CU, which was seized last July and later placed under a new management and board, had fixed its financial problems helping ensure a brighter future.
Mutual had been taken over by Latham's office on grounds the CU had mismanaged its loan portfolio and exceeded expenses, points challenged in a state court and later part of a settlement with directors and the former CEO Dale Dalbey.
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"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 the new board.
The Birmingham CU ended 2009 with a $5.8 million loss and this year has closed two branches and shed nine employees.
In the first half of 2010, Mutual recorded a first half profit of $737,000 and most recently has maintained a capital ratio of 6.19%.
Latham's takeover of Mutual drew harsh criticism a year ago from the leadership of the Alabama Credit Union League charging he acted prematurely and unfairly singling out Mutual Savings for the failure action and ousting the board and Dalbey.
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