Detroit Credit Union Shuts Down
Michigan regulator says Greater Christ Baptist Church CU was operating in an unsafe and unsound manner.
After determining the $608,330 Greater Christ Baptist Church Credit Union was operating in an unsafe and unsound manner, Michigan regulators shut down the Detroit cooperative Tuesday.
An Ingham County Circuit Court judge placed the credit union into receivership and appointed the NCUA as its receiver, the state regulator said. NCUA’s Asset Management and Assistance Center will issue correspondence in the near future to individuals holding verified share accounts at the credit union.
Although the Michigan Department of Insurance and Financial Services did not specify the credit union’s unsafe and unsound issues, its NCUA financial performance reports shows Greater Christ Baptist Church CU recorded net income losses of $26,575 last year, $17,300 in 2016 and $4,853 in 2015. The credit union lost an additional $2,550 at the end of the first quarter.
While the credit union’s total loans fell from $244,305 in 2013 to $197,866 in 2017, its delinquent loan rate increased from 1.82% in 2013 to 8.25% in 2017, according to NCUA financial performance reports. By the end of the first quarter, its loans totaled $214,344 with a delinquency loan rate of 12.03%.
Established in 1957, the credit union served 396 members.