New York State Employees FCU Closed

The National Credit Union Administration liquidated New York State Employees Federal Credit Union of New York, New York.

Palisades Federal Credit Union of Pearl River, New York, immediately assumed most of New York State Employees Federal Credit Union’s assets and all members, shares and loans.

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

As of June 2017, the credit union was unprofitable and significantly undercapitalized with a net worth ratio of 3.92 percent. The credit union reported that 8.28 percent of its loans were at least 60 days or more past due.

At the time of liquidation, New York State Employees Federal Credit Union served 1,183 members and had assets of $2 million, according to the credit union’s most recent Call Report.

New York State Employees Federal Credit Union is the fourth federally insured credit union liquidation in 2017. The last New York-based credit union to be liquidated was Bethex FCU (Bronx, NY) on December 18, 2015.

Read the press release.