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.