DENVER IOUE #9 CU lost its appeal of an order from Colorado’s Commissioner of Financial Services, forcing the $2.6-million credit union to find a merger partner.
The credit union, which serves members of the local International Union of Operating Engineers, had argued that it was substantially in compliance with a net worth restoration plan set by the state credit union supervisor in September 2012, and had 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 claimed “certain examination comments are erroneous, resulting in faulty conclusions based on those errors.”
IOUE #9 CU’s appeal was heard by the Financial Services Board. Chris Myklebust, Commissioner of the Colorado Division of Financial Services, told Credit Union Journal the board upheld the ruling. “The credit union is still in business and is taking care of its members, but the long-term plan is for it to find a partner,” he said.
IOUE #9 has never had more than $3.2 million in assets. It rebuilt its net worth ratio to 6.3% after falling briefly to 5% at mid-year 2011, while reporting small losses for five years in a row. Its loss for 2012 was $2,304, after a $101,000 loss for 2011.
