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State Banking Commissioner Jorge Perez recently issued a consent order against the New Haven County Credit Union Inc. over alleged “unsafe and unsound practices.”
According to the state Department of Banking, the consent order, issued Aug. 5, follows its Financial Institutions Division’s examination of the credit union.
Based upon this examination, Perez believes the credit union “has engaged in unsafe and unsound practices and that grounds exist to initiate administrative action” the consent order states.
The credit union, at 450 Universal Drive in North Haven, agreed to the issuance of the consent order to avoid formal administrative proceedings. The credit union is a non-profit financial institution that has been serving its members for about 48 years.
Matthew Smith, a spokesman for the Department of Banking, called it an “administrative issue.”
“Consumers are not likely to be affected in any way,” Smith said. “Their deposits will continue to be insured through the NCUA [National Credit Union Administration].”
“Typically, these types of issues are worked out during the examination process, but that wasn’t the case this time,” Smith said.
Smith noted that the credit union has a new chief executive officer on board who is making changes to comply with the consent order.
Christopher Marone, president and CEO of the New Haven County Credit Union, started in June. According to his LinkedIn profile, prior to coming to the credit union, he most recently had been a branch manager and vice president for KeyBank in Milford.
This week, credit union officials deferred comment on the consent order to Marone, who did not immediately respond to a request for comment.
In the consent order, the department references the need to improve the credit union’s “asset quality, capital adequacy, earnings, management effectiveness, liquidity, and sensitivity to market risk.”
The 10-page consent order includes numerous requirements, such as:
Also, within 60 days, the credit union must ensure effective internal controls are in place, and accurate, complete financial records are maintained, including monthly reconciliation of all general ledger accounts and preparation of accurate monthly financial statements.
Within 60 days, the credit union must engage an independent party to perform a comprehensive audit and verify all member accounts.
The credit union must file timely reports with the NCUA reflecting its financial condition and any delinquent loans.
Within 90 days, the credit union has to adopt a strategic three-year plan which includes its current financial condition and goals. Within 90 days, the board must develop and fully implement a written budget.
If the credit union violates the consent order, Perez and the NCUA may pursue enforcement action.
Read the complete consent order here.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com
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Read HereThis special edition informs and connects businesses with nonprofit organizations that are aligned with what they care about. Each nonprofit profile provides a crisp snapshot of the organization’s mission, goals, area of service, giving and volunteer opportunities and board leadership.
Hartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
Delivering Vital Marketplace Content and Context to Senior Decision Makers Throughout Greater Hartford and the State ... All Year Long!
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