Michigan Regulators Allege Criminal Activity, Shut Down Small Credit Union
The Michigan Office of Financial Insurance Regulation on Thursday closed the $303,261 United Catholic Credit Union of Temperance, Mich., alleging criminal activity at the one-person shop. The OFIR appointed the NCUA as liquidating agent.
An OFIR examination found UCCU was operating in an unsafe and unsound manner and insolvent. The Michigan regulator said in a release it is working closely with investigators at the state’s Attorney General’s Office. The credit union’s only part-time employee was Manager Sharon Broadway.
According to June 2012 financial performance reports posted on the NCUA’s website, UCCU had 15.50% net worth and no delinquencies or charge offs. Return on average assets was -0.15%.
Other financial indicators were performing far below peer averages, including 0.13% yield on average investments, 0.08% fee income to average assets, 2.55% net margin and 2.70% operating expense.
A federally insured, state-chartered credit union, UCCU was chartered in 1961, operated one branch and served more than 200 members belonging to Catholic parishes in the Temperance/Erie area of Michigan.
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.
UCCU is the eighth federally insured credit union liquidation in 2012.