Weighed down by a large portfolio of failed South Florida real estate loans, Huron River Area Credit Union in Ann Arbor, Mich., was liquidated by the National Credit Union Administration and its remnants sold to Detroit Edison Credit Union, the federal regulator announced Sunday.
Huron River Area, formerly holding $320 million of assets, had reported three quarters of losses, totaling $59 million, mostly related to loans made in South Florida.
Under a purchase and assumption agreement, the $485 million-asset Detroit Edison bought the member deposits and seven branches of the Ann Arbor credit union. NCUA assumed the failed assets — about $170 million of real estate loans in the Florida communities of Cape Coral and Lehigh Acres.
Huron River Area is one of three recent credit union failures with exposures to the South Florida developments. In June, NCUA sold New Horizons Community Federal Credit Union, a $320 million-asset, Denver institution. The agency is also expected to liquidate the $380 million-asset Norlarco Credit Union in Fort Collins, Colo. Last week, NCUA was accepting bids from three Colorado credit unions for the remnants of Norlarco.
Huron River Area was chartered in 1937 and had more than 39,000 members. Its sale closed Saturday.
