Friday, May 1, 2015

One CU Failed, Another Conserved

The National Credit Union Administration (NCUA) yesterday closed one credit union and conserved another credit union.

NCUA liquidated TLC Federal Credit Union of Tillamook, Oregon. Fibre Federal Credit Union of Longview, Washington, immediately assumed TLC Federal Credit Union’s members, shares, loans and certain other assets and liabilities.

NCUA made the decision to liquidate TLC Federal Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own.

TLC Federal Credit Union reported a loss of almost $3.7 million for all of 2014. As of March 2015, the credit union was critically undercapitalized with a net worth ratio of minus 0.74 percent.

At the time of liquidation, TLC served 13,375 members and had assets of approximately $109 million, according to the credit union’s most recent Call Report.

TLC is the third credit union to be liquidated in 2015

Also, NCUA placed New Bethel Federal Credit Union of Portsmouth, Virginia, into conservatorship due to safety and soundness issues. New Bethel reported losses for all of 2014 and the first quarter of 2015.

ABNB Federal Credit Union, of Chesapeake, Virginia, will operate New Bethel during the conservatorship under a management agreement with NCUA.

New Bethel serves 176 members and has assets of $105,562, according to the credit union’s most recent Call Report.

Read the TLC press release. Read the New Bethel press release.

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.