ANN ARBOR, Mich. – Weighted down by a large portfolio of failed south Florida real estate loans, Huron River Area CU was liquidated by NCUA and its remnants sold off to Detroit Edison CU, the federal regulator announced Sunday.
The once-$320 million credit union has three-quarter losses of $59 million, most of it related to loans made in far-flung south Florida. Under a purchase and assumption agreement with Detroit Edison, the $485 million credit union will purchase the member deposits and seven branches of Huron River Area and NCUA will assume the failed assets–about $170 million in 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 off New Horizons Community FCU, a $320 million Denver-based credit union in a P&A, and the agency is expected to announce a P&A any day for Norlarco CU, a $380 million institution based in Fort Collins, Colo.
Last week, NCUA was accepting bids from three Colorado credit unions–Ent FCU, Belco FCU and Public Service FCU–for the remnants of Norlarco.
Huron River Area CU was chartered in 1937 and served more than 39,000 members in over 1,000 select groups. The sale of Huron River Area was completed at the close of business Saturday.
