One Credit Union Closed and Another Two Seized by NCUA

NCUA announced on June 24 that it liquidated St. James A.M.E. FCU and placed Borinquen FCU and O.U.R. FCU into conservatorship.

St. James A.M.E. FCU was a low-income faith-based credit union located in Newark, N.J. The members of St. James A.M.E. FCU were assumed by North Jersey Federal Credit Union of Totowa, N.J.

NCUA made the decision to liquidate St. James A.M.E. Federal Credit Union and discontinue its operations as they were after determining the credit union was insolvent and has no prospect for restoring viable operations on its own. At the time of liquidation and subsequent purchase by North Jersey FCU, the credit union served 831 members and had deposits of approximately $1 million.

At the end of the first quarter of 2011, St. James A.M.E FCU was significantly undercapitalized. It reported that almost 20 percent of its loans were 60 days or more past due.

Borinquen Federal Credit Union of Philadelphia was placed into conservatorship.

Although the $7 million credit union has a net worth ratio of 15.12 percent, the credit union reported that approximately 7.51 percent of its loans were 60 days or more past due.

On June 6, Borinquen FCU entered into a cease and desist order with NCUA.

O.U.R. FCU, a low-income credit union located in Eugene, Oregon, was placed into conservatorship by NCUA.

O.U.R. FCU was significantly undercapitalized with a net worth ratio of 3.86 percent. Less than one half of one percent of all loans were 60 days or more past due.

Read the press release on St. James A.M.E. FCU.

Read the press release on Borinquen FCU.

Read the press release 0n O.U.R. FCU.