The Credit Union Journal (subscription required) is reporting that Realtors FCU (Rickville, MD) is seeking to merge with $2.2 billion Northwest FCU in Herndon, Virginia.
Realtors FCU was chartered in 2008 by the National Association of Realtors and operated as a virtual credit union.
However, Realtors FCU during its brief history posted losses of $2.6 million for 2010, $2 million for 2011, and $414,000 for the first quarter of 2012.
As of March 31, the credit union was adequately capitalized with a net worth ratio of 6 percent. The credit union reported a sharp increase in delinquent loans during the first quarter, as the delinquent loan ratio jumped from 1.53 percent at the end of 2011 to 9.16 percent.
Realtors FCU's members will vote on the merger by electronic ballot and at a May 18 special meeting.
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More proof that starting a credit union is difficult when American consumers want every banking/credit union service and there is not enough capital to support the providing.
ReplyDeleteMaybe Northwest FCU should take over JP Morgan, too. Realtors posted losses of $2 million for 2011, and $414,000 for Q1 of 2012. JPM just lost a thousand times more, $2 billion in 2012, and expects another $1 billion in losses next quarter.
ReplyDeleteThe JPM CEO says they were “stupid”, hold poorly reviewed instruments from internal controls standpoint, have product that is poorly executed by their professional staff, and poorly monitored from an enterprise risk management standpoint. Where were the bank regulators? Are they “stupid” too? A cheerleader regulator, too inexperienced and/or incapable of understanding and supervising complex product risk? Certainly, we know from ABA logic, if one institution has problems, the entire industry should face prohibitions, sanctions, portfolio limitations and suffer endless regulatory disparagement.
Banks should enjoy Dodd-Frank and more Volker Rule because they brought it on themselves. As well as greater loss of public and government trust, especially when engineered in-house synthetic financial instruments are egregiously ill-traded in an FDIC safety-netted environment, backed by the full faith and credit of the US taxpayer
AMEN!! I second this motion.
DeleteTom Glatt bailed out of Realtors the same way he bailed out of his foreclosed home in Arizona. I suggest he bail out of the credit union industry altogether.
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