The Montgomery County Credit Union in Dayton has been placed in conservatorship by the Ohio Division of Financial Institutions to rehabilitate the struggling financial institution, state regulators said Thursday.
“They’ve had some financial conditions that have been deteriorating that we attempted to work with them to correct,” said Michael Duchesne, a spokesman for the Ohio Department of Commerce. “I can’t get into specifics. But, obviously, we don’t take actions like this lightly. We felt that it had gotten to the point where this was the only remaining action for us.”
In 2013, the credit union was investigated for allegations of poor management and mishandled money uncovered during an ongoing audit. The board of directors told members that the problems led to an approximately $1.3 million net loss in 2012, and the credit union terminated previous chief executive officer Lori Tieman following the audit.
Going forward, the National Credit Union Administration will run the day-to-day operations of the credit union as the appointed agent for the conservator. Deposits up to $250,000 remain protected by the National Credit Union Share Insurance Fund.
Duchesne said the ultimate goal is to return the credit union to a sound and solvent condition.
“Every situation is different, and I couldn’t speculate on the timeline,” he said. “But the goal is to get them back running in a safe and sound fashion, and then turn it back over to the members to run.”
The credit union has total assets of $27.3 million, according to its most recent call report, and serves approximately 6,600 members.
It was founded 50 years ago and has main offices in leased space at 409 E. Monument Ave., Suite 105, Dayton. A second off-site office is at Good Samaritan Hospital.
The credit union is a nonprofit organization and not affiliated with local government. Nor does Montgomery County government have any deposits or loans with the credit union, according to the county treasurer’s office.
The credit union will remain open for business Monday through Friday 8 a.m. to 5:30 p.m., and Saturday 8:30 a.m. to noon, except for holidays.
Members with additional questions about their insurance coverage have been advised to contact the National Credit Union Administration’s Consumer Assistance Center toll free at 800-755-1030. Or visit their website at http://www.mycreditunion.gov