NCUA places Mid East Tennessee Community CU under conservatorship
The National Credit Union Administration on Tuesday placed Mid East Tennessee Community Credit Union, Decatur, Tenn., into conservatorship.
The $12 million-asset credit union had just 1,855 members when it was conserved, according to NCUA. It served those members via two branches.
The agency did not cite a reason for placing the credit union under its control, but a look at recent call reports show declining performance numbers:
· In 2018, Mid East Tennessee Community Credit Union had just $60,810 in net income. As of Dec. 31, 2018, its net worth ratio was 7.00% (“well capitalized”).
· The previous year, the CU reported $156,851 in net income. As of Dec. 31, 2017, its net worth ratio was 7.37% (“well capitalized”).
· In 2016 the credit union had $100,492 in net income. As of Dec. 31, 2016, its net worth ratio was 7.69% (“well capitalized”).
According to NCUA, member deposits at the credit union are protected by the National Credit Union Share Insurance Fund up to $250,000. The agency said member services will continue uninterrupted at the credit union’s two offices.
Mid East Tennessee Community Credit Union serves persons who have a residence in, work in, worship in, volunteer in, have a relative who lives in, or participate in programs to alleviate poverty or distress in Meigs, Rhea or McMinn counties.
Late last month NCUA liquidated CBS Employees Federal Credit Union, Studio City, Calif., with Los Angeles-based University Credit Union immediately assuming all of the failed institution’s assets, loans and shares. Later it was alleged Edward Rostohar, former CEO of the credit union, embezzled $40 million over two decades.