On July 1, the National Credit Union Administration (NCUA) assisted in the mergers of two financially distressed New York-based credit unions -- 65 Family FCU and Kolmar NY Employees FCU.
These NCUA assisted mergers are what I would call quiet credit union failures as NCUA does not issue press releases regarding assisted mergers. Information about NCUA assisted mergers are posted under Supervisory Actions (Closed Credit Unions).
According to NCUA's Monthly Insurance Report of Activity, 65 Family FCU was merged into Entertainment Industries FCU (Elizabeth, NJ). However, information regarding Kolmar NY Employees merger has not been disclosed as of the publishing of this blog post.
65 Family FCU was critically undercapitalized as of June 2015 with a net worth ratio of 0.53 percent. The $2.8 million credit union reported a loss of almost $134 thousand for the first two quarters of 2015 and had not reported an annual profit since 2007. According to the credit union's financial performance report, its delinquent loan ratio was 5.15 percent.
Kolmar NY Employees FCU was critically undercapitalized as of June 2015 with a net worth ratio of 1.78 percent. The $1.39 million credit union posted a small year-to-date loss as of June 2015. The last time the credit union reported a full-year profit was 2006. As Of June 2015, the credit union reported that 4.76 percent of its loans were delinquent.
These were the second and third NCUA assisted mergers of 2015.
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