Wednesday, February 28, 2018

Taxi Medallion Lender First Jersey CU Liquidated

First Jersey Credit Union (Wayne, NJ) was liquidated by the New Jersey Department of Banking and Insurance.

The Department appointed the National Credit Union Administration as liquidating agent. USALLIANCE Federal Credit Union of Rye, New York, immediately assumed most of First Jersey’s assets and loans and all member shares.

The New Jersey Department of Banking and Insurance made the decision to liquidate First Jersey Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own. At the end of 2017, First Jersey CU was critically undercapitalized with a net worth ratio of zero percent. (Read my February 11, 2018 blog post)

First Jersey Credit Union is the second federally insured credit union liquidation in 2018 and the first New Jersey credit union to be liquidated since 2015.

At the time of liquidation and subsequent purchase and assumption by USALLIANCE Federal Credit Union, First Jersey Credit Union served 9,045 members and had assets of almost $86 million, according to the credit union’s most recent Call Report.

Read the press release.

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