Alabama Regulators Send Mutual Savings CU Back To Members
BIRMINGHAM, Ala. – State regulators said they plan to return Mutual Savings CU, a one-time $194 million credit union taken under conservatorship a year ago, back to its members on July 31.
The 74-year-old credit union was seized last Aug. 5 by the Alabama CU Association as losses were mounting. Mutual Savings reported a $5.8 million loss for the year. Since then, the credit union closed two branches and laid off nine employees, trimming expenses by as much as $1.5 million a year, which helped it return to profitability in the first quarter of the year to the tune of $322,000.
The state regulators, who brought in a new CEO, Douglas Key, to run the credit union last fall, have also appointed a new board of directors to oversee the institution when it leaves conservatorship.