State Regulator Conserves Michigan Credit Union

State Regulator Conserves Michigan Credit Union
February 23, 2018 Marketing GrafWebCUSO
Poor financial performance

According to NCUA financial performance reports, the $84.6 million Ukrainian Future Credit Union is well capitalized and has not posted net income losses over the last five years, but Michigan regulators placed the Warren-based credit union into conservatorship Friday.

The Michigan Department of Insurance and Financial Services in Lansing assigned the NCUA as the conservator.

In a prepared statement, Michigan’s DIFS Director Patrick McPharlin determined conservatorship of the Ukrainian Future CU was “necessary to protect the public interest,” but he did not specifically say why the cooperative was placed into conservatorship. In the NCUA’s prepared statement distributed late Friday afternoon, Ukrainian Future was conserved because of unspecified “unsafe and unsound practices.” 

Ukrainian Future CU operated three branches and employed16 staffers who served 5,692 members. Andrew Jakymowych, listed as the credit union’s president/CEO, made $140,409 in 2015, according to its latest 990 IRS form. In 2014, he received a salary of $147,220.

The credit union posted a net worth of 13.40% and its ROAA was 0.75% at the end of 2017, according to NCUA financial performance reports.

Though the Michigan credit union had a delinquent loan rate of only 0.19% last year, it delinquencies were more than 5% in 2013 and 2014 and then declined to 4.86% in 2015 and 2.41% in 2016, according to NCUA financial performance reports.

Additionally, over the last five years, Ukrainian Future’s total loans have been falling.

In 2013, the credit union recorded $37 million in total loans, $35 million in 2014, $30 million in 2015 and $27 million in 2016. At the end of last year, the credit union’s total loans increased to $28 million.

Ukrainian Future also ended 2017 with $54.5 million in investments and $11.9 million in capital.