Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Laws & Regulations > Decisions on Bank Applications





Decisions on Bank Applications

Skip Left Navigation Links
0
Decisions on Bank Apps Home
Investments & Activities

   •  Equity Securities
   •  Real Estate
   •  Insurance
   •  Miscellaneous
Deposit Insurance
Merger Transactions
Mutual to Stock Conversions
Part 347
Other Applications
Michigan Community Savings Bank, successor to Community Schools Credit Union

FEDERAL DEPOSIT INSURANCE CORPORATION

Re: Michigan Community Savings Bank, successor to Community Schools Credit Union
Rochester Hills, Oakland County, Michigan
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting under delegated authority, has fully considered all facts and information relevant to the factors set forth in Section 6 of the Federal Deposit Insurance Act as they relate to the application for Federal deposit insurance, and the establishment and operation of the Community Schools Credit Union offices as bank branches, by Michigan Community Savings Bank, and has concluded that the application should be approved. Michigan Community Savings Bank is a proposed full-service mutual savings bank located at 310 West Tienken Road, Rochester Hills, Michigan. The proposed branches are listed below.

Lake Orion Branch
670 Lapeer Road
Lake Orion, Michigan 48362

Lake Orion High School Branch
495 East Scripps Road
Lake Orion, Michigan 48362

Rochester Adams High School Branch
575 East Tienken Road
Rochester Hills, Michigan 48306

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the bank for federal deposit insurance and for the establishment and operation of branches, be approved subject to the following conditions:

1. That the applicant maintain a Tier 1 capital ratio (as defined in the appropriate capital regulation) at not less than eight percent throughout the first three years of operation and that an adequate allowance for loan and lease losses be provided.

2. That deposit insurance will not become effective until the applicant has been granted a charter as a depository institution, has authority to conduct depository institution business, and its establishment and operation as a depository institution have been fully approved by the appropriate state and/or federal supervisory authority.

3. That the bank shall operate within the parameters of the business plan submitted to the FDIC. Furthermore, during the first three years of operations, the bank shall notify the regional director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change.

4. That the applicant will submit, for approval, the names of two candidates for the position of Director of Michigan Community Savings Bank, to the Chicago Regional Director within 90 days from the Conversion Date. The candidates should have significant business experience, and be involved and prominent in the community. Upon approval by the Regional Director, the Michigan Community Savings Bank will add these candidates to its Board of Directors.

5. That if federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted herein shall expire at the end of the said twelve-month period.

6. That until the conditional commitment herein granted becomes effective, the FDIC shall have the right to alter, suspend or withdraw said commitment should any interim development be deemed to warrant such action.

Dated at Washington, D.C. this day of April, 2001.

FEDERAL DEPOSIT INSURANCE CORPORATION

By:________________________________
John M. Lane
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

Re: Michigan Community Savings Bank, successor to Community Schools Credit Union
Rochester Hills, Oakland County, Michigan
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Sections 5 and 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 1815 and 1828(d)), an application for federal deposit insurance with membership in the Bank Insurance Fund and for establishment and operation of branches, has been filed on behalf of Michigan Community Savings Bank (the bank), a proposed state chartered mutual savings bank with offices at 310 West Tienken Road, Rochester Hills, Michigan (Main Office); 670 Lapeer Road, Lake Orion, Michigan, 495 East Scripps Road, Lake Orion, Michigan; and 575 East Tienken Road, Rochester Hills, Michigan.

Michigan Community Savings Bank is the proposed successor to Community Schools Credit Union, a $35 million institution that has served the educational community in the northeast corner of Oakland County Michigan for 46 years. Oakland County is the third wealthiest county in the country, and it ranked second in private sector employment growth in the 1990s. The conversion will allow the bank to broaden its customer base and product offerings; nonetheless, management plans for only modest growth and little change in business strategy.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Bank Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov