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.

No comments:

Post a Comment

 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.