Regulators seized a $1.6 billion-asset Florida credit union on Friday after doubts surfaced about the value of its assets.
State regulators put Eastern Financial Florida Credit Union, which had about 200,000 members and branches from Miami to Jacksonville, into conservatorship. The National Credit Union Administration said Space Coast Credit Union of Melbourne would temporarily manage Eastern Financial's operations.
State regulators ordered the credit union to seek a merger partner and reassess the valuations on some assets, including foreclosed properties and collateralized debt obligations. In a court filing, the state cited "persistent concerns about noncompliance with generally accepted accounting principles" and ongoing issues with credit quality.
This month Eastern Financial reported a revised operating loss of $113 million for last year, and a $4.5 million loss for the first quarter of this year.
