Florida Regulator Appoints NCUA Conservator for Alliance Credit Union of Florida

Lobby of the NCUA.

The $59.1 million Alliance Credit Union of Florida, which posted a loss of $2,372,203, was placed into conservatorship by Florida’s Office of Financial Regulation, which appointed the NCUA as the conservator on Friday evening.The NCUA said in a prepared statement that member services will continue online and at the credit union’s two Gainesville branches. Tina Hunter is the CEO, according to the credit union’s profile report. Alliance CU serves 5,394. The credit union’s third quarter Call Report showed it employs 20 persons.Alliance saw loan growth from $36.4 million to $49.1 million from 2019 to 2023, while its assets increased from $52.3 million to $62.7 million during the same years, according to NCUA financial performance reports.However, at the end of 2023 it posted a loss of $184,231 and Alliance’s losses continue to mount during the three quarters of this year, $808,176, $1,340,848, and $2,372,203, respectively, according to NCUA’s quarterly financial performance reports.Alliance’s loans fell from $49.1 million at the end of 2023 to $47.3 million, $45.8 million and $43.3 million, during the three quarters of this year, respectively. And the credit union’s asset also fell from $62.7 million during the first quarter of this year to $59.1 million at the end of the third quarter.Alliance’s membership also fell more than 12% and 10%, in the second and third quarters of 2024 respectively.At the end of 2023, the credit union’s delinquent loans and net charge offs to average loans were 5.42%, much higher than the peer average of 1.24%, according to NCUA financial performance reports. During the three quarters of this year, the delinquent loans and net charge offs posted were 4.54%, 5.36%, and 5.87%, respectively.Alliance’s year-to-date charge offs totaled $1,428,659, while its recoveries amounted to $55,130, according its third quarter Call Report. New and used vehicle loans accounted for $1.2 million on total losses.What’s more, the credit union provision for loan losses increased substantially from $433,000 in September 2023 to $2.1 million in September 2024, NCUA financial performance reports showed.Alliance’s non-interest expense to average assets was 5.56% compared to peer average of 3.43% at the end of 2023. During the three quarters of 2024, the non-interest expense was 7.16%, 7%, and 7.32%, respectively, NCUA financial performance reports showed.The credit union’s non-interest expense at the end of 2023 was $3.5 million, up from its non-interest expense of $3.1 at the end of 2022. Alliance’s non-interest expense at the end of this year’s third quarter totaled $3.3 million compared to a non-interest expense of $2.6 million at the end of last year’s third quarter, according to NCUA quarterly financial performance reports.Alliance Credit Union of Florida was founded in 1944 to serve employees of the City of Gainesville and their families.Tim Cannon, who had been president/CEO Alliance Credit Union of Florida, since 2011, according to his LinkedIn page, received a base compensation of $181,616, plus $27,535 in nontaxable benefits and $8,071 in retirement or other deferred compensation, the credit union’s 2022 IRS 990 form showed.He did not respond to a CU Times email requesting comment.This is the second credit union that has been conserved this year.In June, the $33.5 million Choice Credit Union in Atlanta, Ga., was placed into conservatorship in consultation with the Georgia Department of Banking and Finance.The credit union, which serves 6,779 members, recorded a loss of $2,274,130, according to NCUA’s third quarter financial performance reports.