Saturday, November 4, 2017

Two Assisted Mergers Impose Small Losses on the NCUSIF

The National Credit Union Administration's Office of the Inspector General (OIG) recently reported that the National Credit Union Share Insurance Fund (NCUSIF) incurred small losses associated with the assisted merger of two credit unions between April 1, 2017 and September 30, 2017.

According to the Semiannual Report to the Congress, Love Gospel Assembly Federal Credit Union (Bronx, NY) and Madco Credit Union (Edwardsville, IL) imposed an estimated loss to the NCUSIF of $30,771 and $25,000, respectively.

Love Gospel Assembly FCU failed due to poor record keeping and inadequate management. The credit union was closed on August 2. The NCUA approved a voluntarily assisted merger with USAlliance Federal Credit Union (Rye, NY).

Madco Credit Union failed due to severe operational concerns and potential unrecorded liabilities and unrecognized losses. NCUA approved an involuntary assisted merger with with 1st MidAmerica Credit Union (Bethalto, IL).

Read the report.
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