Monday, August 2, 2010

Certified Federal Credit Union Closed

The National Credit Union Administration liquidated Certified Federal Credit Union (Certified) of Commerce, California on July 31, 2010. NCUA immediately signed an agreement with Vons Employees Federal Credit Union (Vons) of El Monte, California, to assume the assets and liabilities of Certified.

At closure, Certified had $37.6 million in assets and served over 8,580 members.

Through the first half of 2010, Certified FCU reported a loss of nearly $10 million. Almost 13 percent of its loans were at least 60 days past due. The credit union was insolvent with a net worth ratio of -17.11 percent as of June 2010.
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2 comments:

  1. GeorgeAugust 2, 2010 at 7:03 PM

    Should we assume that no member at Certified FCU lost any of their deposits (even deposits over $250K)? As usual, the NCUA is not clear on this.

    The FDIC has done a good job at making it clear when all deposits are assumed or only insured deposits are assumed by an acquiring bank. Seems like all acquiring banks have been assuming all deposits (except brokered deposits) since the financial crisis began. Any insights into this change at the FDIC?

    ReplyDelete
  2. Keith LeggettAugust 3, 2010 at 4:19 PM

    As I understand it, it deals with least cost resolution. Apparently, there is greater franchise value associated with purchasing all deposits, not just insured deposits.

    ReplyDelete

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