Security Credit Union Acquires All Deposits of Craftsman Credit Union in Detroit

FOR IMMEDIATE RELEASE
September 6, 2013
Media Contact: Caleb Buhs at 517-373-2380
Consumer Hotline: 877-999-6442
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LANSING - Michigan Department of Insurance and Financial Services (DIFS) took action today to close Craftsman Credit Union in Detroit and facilitate the sale of all deposits and approximately 50 percent of the loans to Security Credit Union, protecting all depositors and ensuring uninterrupted access to funds. All members of Craftsman Credit Union will immediately become members of Security Credit Union.

“Craftsman Credit Union members should be assured that all of their deposits are protected,” said DIFS Director Kevin Clinton. “As new members of Security, former Craftsman members will continue to have all banking services available to them, without interruption.”

The lone Craftsman Credit Union branch will reopen on Monday, September 9th, as a branch of Security Credit Union. The 6,403 members of Craftsman Credit Union can continue to access their funds by utilizing existing checks and ATM/debit cards. Checks drawn on the credit union will continue to be processed. Members with loans should continue to make their payments as usual. No Craftsman depositor will lose any funds in the transaction.

Craftsman’s capital had declined to a level that posed a risk to its ability to operate safely. As of June 30, 2013, Craftsman Credit Union had $24.1 million in total assets, $23.3 million in deposits, and net loans in the amount of $5.6 million.

DIFS Director Clinton appointed the National Credit Union Administration (NCUA) as receiver through petition to the Ingham County Circuit Court. The NCUA will administer the transfer of assets from Craftsman to Security Credit Union and will become the servicer of the loans not purchased by Security.

Craftsman Credit Union is the nation’s 12th federally-insured credit union closure this year and the second in Michigan in 2013.

Members with questions about deposits with Craftsman Credit Union should call (313) 554-9300 or visit the Detroit branch located at 2444 Clark Street. Members with questions about today's transaction or those who would like more information about the closing of Craftsman Credit Union can call the NCUA’s Asset Management and Assistance Center toll-free at (877) 715-0777 between 9 a.m. and 6 p.m.

DIFS is responsible for the regulatory oversight of insurance and financial services industries, including state-chartered credit unions. The Department ensures that the businesses within these industries are safe, sound, and entitled to the public’s confidence.

NCUA is the federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.

To view the order appointing the NCUA receiver for Craftsman Credit Union, visit:
http://www.michigan.gov/documents/difs/CCU_433054_7.pdf