Saturday, March 16, 2013

NCUA Closes Two Credit Unions

The National Credit Union Administration (NCUA) liquidated Pepsi Cola Federal Credit Union of Buena Park, Calif. and I.C.E. Federal Credit Union of Inglewood, Calif. NCUA made the decision to discontinue the operations of both credit unions after determining the credit unions were insolvent and have no prospect for restoring viable operations.

While I.C.E. FCU was well capitalized at the end of 2012, it reported losses for 2011 and 2012. Delinquent loan ratio at the credit union increased by 232 basis points during 2012 to 4.65 percent.

Pepsi Cola FCU's year-end 2012 financial statements filed with NCUA are a little suspicious. The credit union is well capitalized with a net worth ratio of 22.45 percent. It reported no delinquent loans. It did report losses for 2011 and 2012.

In both cases, NCUA did an insured depositor payoff.

Read the I.C.E press release and Pepsi Cola press release.

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