New details of the problems at the Montgomery County Credit Union Inc. have emerged nearly two weeks after after the credit union’s board chairman raised allegations of poor past management and mishandled money.
On April 30, board chairman Michael Buchanan told about 120 members gathered for the credit union’s annual meeting that the problems led to an approximate net loss of $1.3 million in 2012.
The announcement followed the firing in February of the credit union’s chief executive, Lori Tieman, and the hiring of Lillie & Co. of Sunbury, near Columbus, as the credit union’s auditing firm.
Tieman could not be reached for comment. Sylvia Minnifield was named acting CEO.
Records at the National Credit Union Administration shows the credit union also had a net loss of $29,480 in 2011. That’s contrary to what the credit union told members in its 2011 annual report. In that report, the credit union said it had a net gain of $22,868 for the year.
“The figures that were reported to the members at the annual meeting last year were incorrect,” Buchanan said in response to a question from the Dayton Daily News.
Net income in 2010 was $69,629, according to reports. Currently the annual report and financial statement filed with the NCUA for the year ended Dec. 31, 2010, match.
In a new statement filed with the NCUA for first quarter 2013, the credit union reported a net loss of $60,761. Membership declined from 7,393 members at the end of 2012 to 7,259 members as of March 31, while assets grew to $32.2 million.
Membership is down 23 percent over the last 10 years from 9,376 members in December 2003.
Buchanan also said that at the credit union’s May 2012 annual meeting, there as an election of directors for the first time in at least 12 years. That’s how long Buchanan has been a board member.
Two of the board’s five members were up for election at that meeting — former chair Michael O’Ryan and Ronald Casey. O’Ryan was not re-elected, and Casey resigned from the board before the meeting. Tarina Mason and Marion Jackson were elected to fill the board seats.
After initially agreeing to an interview, O’Ryan declined to comment.
At the same meeting, fellow board members elected Buchanan as chairman.
The lineup of board directors changed again at this year’s meeting . Buchanan and Juanita Hunn were up for re-election. Members elected new board member Patsy Bryant to replace Hunn. Buchanan was re-elected to the board for a three-year term and re-elected chairman, he said.
The credit union’s other board members declined comment. They said the organization’s policies require that the chairman make all public comments about credit union operations.
The credit union holds a charter from Ohio Department of Commerce Division of Financial Institutions. It is regulated by Ohio Dept. of Commerce, the lead agency, and NCUA, which has oversight because deposits at the credit union are federally insured up to $250,000.
The Dayton Daily News attempted to learn more about any pending complaints about the credit union that have been filed with the state commerce department, but the department declined the newspaper’s request.
Generally speaking, the Division of Financial Institutions is prohibited by Ohio law from disclosing information about a particular credit union gathered through its examination and supervision process, according to spokesman Dennis Ginty.
“The division’s role is to ensure the safety and soundness of state-chartered credit unions and it takes seriously any alleged wrongdoing at a credit union,” Ginty said in an email. “Credit unions are governed by its board of directors. The board is responsible for an annual audit of the organization and the audit should ensure that the credit union’s financial statement is accurate.”
Any credit union board governs the management, budget, strategic plan, and preparation or review of its annual audit, according to Ginty.
“With each state-chartered credit union, the division has an ongoing dialogue and addresses issues on an ongoing basis. The division also generally conducts examinations of credit unions on an annual basis, but can examine more frequently when circumstances warrant,” Ginty said.
Montgomery County Credit Union, founded 50 years ago, has main offices in leased space at 409 E. Monument Ave., Suite 105, Dayton. A second office is at Good Samaritan Hospital.
The credit union is a nonprofit not affiliated with local government.
The Dayton Daily News was the first to report the approximate $1.3 million net loss at the Montgomery County Credit Union. Look for ongoing coverage of this story as it develops.