DENVER IOUE #9 CU is challenging a rare order from Colorado’s Commissioner of Financial Services for the troubled $2.6-million credit union to have found a merger mate by March 31.
The credit union, which serves members of the local International Union of Operating Engineers, says it is substantially in compliance with a net worth restoration plan set by the state credit union supervisor in September 2012, and has complied with all the terms of a Letter of Understanding and Agreement of December 2011, as well as a Document of Resolution it signed with NCUA in July 2012. It claims “certain examination comments are erroneous, resulting in faulty conclusions based on those errors.”
The state regulator has scheduled a hearing on the challenge for Friday before the Financial Services Board.
IOUE #9 has never had more than $3.2 million in assets. It has rebuilt its net worth ratio to 6.3%, after falling briefly to 5% at mid-year 2011, and has reported small losses for five years in a row. Losses for 2012, for example, were $2,304, after a $101,000 loss for 2011.
The state regulator says the merger order was proper and was issued to protect consumers who are credit union members. The credit union seeks withdrawal of the merger order.
