Wednesday, November 30, 2011

BCT FCU Liquidated

NCUA liquidated BCT FCU of Binghamton, N.Y. Visions Federal Credit Union of Endicott, N.Y., immediately assumed BCT Federal Credit Union’s assets, liabilities, and member shares.

NCUA made the decision to liquidate BCT Federal Credit Union and discontinue operations 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 Visions Federal Credit Union, the former credit union served approximately 3,900 members and had deposits of approximately $41.3 million.

BCT reported a loss of almost $9.6 million as it set aside almost $9.5 million in provisions for loan losses as of September 2011.

This loss caused BCT to become insolvent (net worth of -$3.2 million) with a net worth ratio of -8.44 percent as of the end of September. However, BCT's call report shows that the credit union had a net worth ratio of 12.80 percent as of June 2011.

The credit union reported charging off almost 50 percent of its loan portfolio in the third quarter.

Read the press release.
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