Saturday, October 30, 2010

The Union Credit Union Closed

The Washington Department of Financial Institutions (DFI) closed The Union Credit Union (TUCU) and appointed the National Credit Union Administration (NCUA) as the liquidating agent.

Upon being appointed as liquidating agent, NCUA entered into agreements with Alaska USA Federal Credit Union of Anchorage and Numerica Credit Union of Spokane to purchase and assume certain assets and liabilities of TUCU.

Linda Jekel, Director of DFI's Division of Credit Unions, said: “The Union struggled primarily due to the unemployment of its members. This resulted in a high number of delinquencies, loan charge-offs, negative earnings and low net worth.”

TUCU was insolvent with a net worth ratio of -0.35 percent as of September 2009. The failed credit union reported that 6.78 percent of its loans were 60 days or more delinquent and had losses of almost $474,000 through the first 9 months of 2010.

At the time of liquidation, TUCU had approximately $11,909,715 in assets and served 3,115 members.

This is the 17th federally insured credit union liquidation in 2010.
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