Friday, December 18, 2015

Bethex FCU Liquidated

The National Credit Union Administration today liquidated Bethex Federal Credit Union of Bronx, New York.

USAlliance Federal Credit Union of Rye, New York, immediately assumed Bethex Federal Credit Union’s assets, member shares and most loans. USAlliance is a federally chartered credit union with a low-income credit union designation that has 83,102 members and assets of $1.07 billion, according to the credit union’s most recent Call Report.

NCUA placed Bethex Federal Credit Union into conservatorship on September 18, 2015. NCUA made the decision to liquidate Bethex and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own.

The credit union reported a loss of $851,367 for the first three quarters of 2015. As of September 30, 13.53 percent of the credit union's loans were 60 days or more past due. On November 18, 2015, the credit union repurchased $502,000 it owed in subordinated debt from the TARP Community Development Capital Initiative.

At the time of liquidation and subsequent purchase by USAlliance, Bethex served 5,824 members and had assets of $12.2 million, according to the credit union’s most recent Call Report.

Bethex Federal Credit Union is the tenth federally insured credit union liquidation in 2015.

Read the press release.

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