The National Credit Union Administration on August 31 liquidated taxi medallion lender Melrose Credit Union of Briarwood, New York.
Teachers Federal Credit Union, of Hauppauge, New York, immediately assumed all of Melrose’s members and shares as well as some loans and other assets. Teachers Federal Credit Union is a federal credit union that serves 300,541 members and has assets of nearly $6.1 billion, according to the credit union’s most recent Call Report.
The NCUA made the decision to liquidate Melrose and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations. Troubled taxi medallion loans due to the disruption from ride sharing companies ultimately led to massive losses at the credit union. Click here to review Melrose's mid-year financial performance.
The New York State Department of Financial Services placed Melrose into conservatorship on Feb. 10, 2017, and named the NCUA as conservator.
At the time of liquidation and subsequent purchase by Teachers Federal Credit Union, Melrose served 19,864 members and had assets of approximately $1.1 billion, according to the credit union’s most recent Call Report.
Melrose is the fifth federally insured credit union liquidation in 2018.
Read the press release.
Showing posts with label Credit Union Closure. Show all posts
Showing posts with label Credit Union Closure. Show all posts
Friday, August 31, 2018
Tuesday, December 5, 2017
NCUA Closes Riverdale CU
The National Credit Union Administration on December 4 liquidated Riverdale Credit Union of Selma, Alabama.
Jefferson Financial Federal Credit Union of Metairie, Louisiana, immediately assumed Riverdale Credit Union’s membership, shares, loans, and most other assets.
Riverdale was placed into conservatorship on June 22, 2017, as a result of unsafe and unsound practices at the credit union. NCUA made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
Read my November 2 blog post on Riverdale's deteriorating financial condition.
At the time of liquidation, Riverdale served 11,572 members and had assets of $54,924,278, according to the credit union’s most recent Call Report. Chartered in 1967, Riverdale Credit Union served persons who live, work, worship, or attend school in Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox counties in Alabama as well as various employee groups.
Riverdale is the fifth federally insured credit union liquidation in 2017.
Read the press release.
Jefferson Financial Federal Credit Union of Metairie, Louisiana, immediately assumed Riverdale Credit Union’s membership, shares, loans, and most other assets.
Riverdale was placed into conservatorship on June 22, 2017, as a result of unsafe and unsound practices at the credit union. NCUA made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
Read my November 2 blog post on Riverdale's deteriorating financial condition.
At the time of liquidation, Riverdale served 11,572 members and had assets of $54,924,278, according to the credit union’s most recent Call Report. Chartered in 1967, Riverdale Credit Union served persons who live, work, worship, or attend school in Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox counties in Alabama as well as various employee groups.
Riverdale is the fifth federally insured credit union liquidation in 2017.
Read the press release.
Friday, October 27, 2017
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.
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.
Friday, March 31, 2017
Conserved Valley State CU Closed
The State of Michigan Department of Insurance and Financial Services liquidated Valley State Credit Union of Saginaw, Michigan, and named the National Credit Union Administration (NCUA) as liquidating agent.
ELGA Credit Union of Burton, Michigan, immediately assumed Valley State Credit Union’s members, assets, shares, and loans. ELGA Credit Union is a federally insured, state-chartered credit union with assets of $498,512,717 and 64,058 members, according to its most recent Call Report.
The Department of Insurance and Financial Services made the decision to liquidate Valley State Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for recovery. The Department placed Valley State Credit Union into conservatorship on Aug. 17, 2016 and named NCUA as conservator on Nov. 9, 2016.
According to the credit union's most recent Call Report, the credit union was significantly undercapitalized with a net worth ratio of 2.90 percent. Delinquent loans were 7.42 percent of total loans and 154.59 percent of net worth. At the end of 2016, the credit union recorded a loss of almost $2.1 million.
Valley State Credit Union is the second federally insured credit union liquidation in 2017 and the first credit union to fail in Michigan since Veterans Health Administration Credit Union (Detroit, MI) on March 29, 2016.
Read the NCUA press release.
ELGA Credit Union of Burton, Michigan, immediately assumed Valley State Credit Union’s members, assets, shares, and loans. ELGA Credit Union is a federally insured, state-chartered credit union with assets of $498,512,717 and 64,058 members, according to its most recent Call Report.
The Department of Insurance and Financial Services made the decision to liquidate Valley State Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for recovery. The Department placed Valley State Credit Union into conservatorship on Aug. 17, 2016 and named NCUA as conservator on Nov. 9, 2016.
According to the credit union's most recent Call Report, the credit union was significantly undercapitalized with a net worth ratio of 2.90 percent. Delinquent loans were 7.42 percent of total loans and 154.59 percent of net worth. At the end of 2016, the credit union recorded a loss of almost $2.1 million.
Valley State Credit Union is the second federally insured credit union liquidation in 2017 and the first credit union to fail in Michigan since Veterans Health Administration Credit Union (Detroit, MI) on March 29, 2016.
Read the NCUA press release.
Friday, March 17, 2017
Florida Conference AME Church FCU Closed
The National Credit Union Administration (NCUA) liquidated Florida Conference AME Church (FCAMEC) Federal Credit Union of Tallahassee, Florida.
Gulf Winds Federal Credit Union, of Pensacola, Florida, has assumed the members and deposits of the former Florida Conference AME Church Federal Credit Union.
NCUA made the decision to liquidate the Florida Conference AME Church Federal Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
As of December 31, 2016, the credit union was significantly undercapitalized with a net worth ratio of 2.75 percent. The credit union posted a small loss of $9,601 for 2016 after posting a loss of $104,541 for 2015.
Florida Conference AME Church Federal Credit Union served 560 members and had assets of $1,760,664 at the end of 2016. The credit union had a low-income designation.
This is the first credit union to be liquidated in 2017.
Read the press release.
Read the press release on Gulf Wind's assumption of deposits and members.
Gulf Winds Federal Credit Union, of Pensacola, Florida, has assumed the members and deposits of the former Florida Conference AME Church Federal Credit Union.
NCUA made the decision to liquidate the Florida Conference AME Church Federal Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
As of December 31, 2016, the credit union was significantly undercapitalized with a net worth ratio of 2.75 percent. The credit union posted a small loss of $9,601 for 2016 after posting a loss of $104,541 for 2015.
Florida Conference AME Church Federal Credit Union served 560 members and had assets of $1,760,664 at the end of 2016. The credit union had a low-income designation.
This is the first credit union to be liquidated in 2017.
Read the press release.
Read the press release on Gulf Wind's assumption of deposits and members.
Tuesday, November 29, 2016
First African Baptist FCU Closed, American Heritage FCU Assumes Members and Deposits
The National Credit Union Administration liquidated First African Baptist Church Federal Credit Union of Sharon Hill, Pennsylvania.
American Heritage Federal Credit Union of Philadelphia immediately assumed First African Baptist’s members and deposits.
NCUA made the decision to liquidate First African Baptist Church Federal Credit Union after determining the credit union was insolvent with no prospect of restoring viable operations.
This low-income designated credit union was seriously undercapitalized with a net worth ratio of 2.09 percent as of September 30.
At the time of its liquidation and subsequent purchase and assumption by American Heritage Federal Credit Union, First African Baptist Church Federal Credit Union had assets of $76,188 and served 261 members, according to its most recent Call Report.
First African Baptist Church Federal Credit Union is the eleventh federally insured credit union liquidation of 2016 and the seventh credit union in Pennsylvania to be liquidated this year..
Read the press release.
American Heritage Federal Credit Union of Philadelphia immediately assumed First African Baptist’s members and deposits.
NCUA made the decision to liquidate First African Baptist Church Federal Credit Union after determining the credit union was insolvent with no prospect of restoring viable operations.
This low-income designated credit union was seriously undercapitalized with a net worth ratio of 2.09 percent as of September 30.
At the time of its liquidation and subsequent purchase and assumption by American Heritage Federal Credit Union, First African Baptist Church Federal Credit Union had assets of $76,188 and served 261 members, according to its most recent Call Report.
First African Baptist Church Federal Credit Union is the eleventh federally insured credit union liquidation of 2016 and the seventh credit union in Pennsylvania to be liquidated this year..
Read the press release.
Wednesday, June 29, 2016
Illinois Regulator Liquidates Good Shepherd Credit Union
Good Shepherd Credit Union (Chicago, IL) was involuntarily liquidated by the Illinois Department of Financial and Professional Regulation.
The credit union had its operations suspended earlier this year by the state credit union regulator.
Good Shepherd was privately insured by American Share Insurance.
Read the Involuntary Liquidation Order.
The credit union had its operations suspended earlier this year by the state credit union regulator.
Good Shepherd was privately insured by American Share Insurance.
Read the Involuntary Liquidation Order.
Wednesday, April 6, 2016
NCUA Closes Six Philadelphia-Area CUs
The National Credit Union Administration (NCUA) liquidated six federal credit unions in the Philadelphia, Pennsylvania, area.
The six liquidated credit unions are Cardozo Lodge Federal Credit Union of Bensalem, Chester Upland School Employees Federal Credit Union of Chester, Electrical Inspectors Federal Credit Union of Bensalem, O P S EMP Federal Credit Union of Bensalem, Servco Federal Credit Union of Bensalem, and Triangle Interests % Service Center Federal Credit Union of Bensalem.
NCUA made the decision to liquidate the six federal credit unions and discontinue operations after determining the credit unions were insolvent and had no prospect for restoring viable operations.
According to NCUA, all six credit unions received management and recordkeeping services from Service Center for Credit Unions, Inc., in Bensalem.
NCUA will probably use these failures to once again call on Congress to grant the agency the same authority as other federal banking regulators to examine third-party service providers.
There have now been ten federally insured credit union liquidations in 2016.
Read the press release.
The six liquidated credit unions are Cardozo Lodge Federal Credit Union of Bensalem, Chester Upland School Employees Federal Credit Union of Chester, Electrical Inspectors Federal Credit Union of Bensalem, O P S EMP Federal Credit Union of Bensalem, Servco Federal Credit Union of Bensalem, and Triangle Interests % Service Center Federal Credit Union of Bensalem.
NCUA made the decision to liquidate the six federal credit unions and discontinue operations after determining the credit unions were insolvent and had no prospect for restoring viable operations.
According to NCUA, all six credit unions received management and recordkeeping services from Service Center for Credit Unions, Inc., in Bensalem.
NCUA will probably use these failures to once again call on Congress to grant the agency the same authority as other federal banking regulators to examine third-party service providers.
There have now been ten federally insured credit union liquidations in 2016.
Read the press release.
Tuesday, March 29, 2016
Veterans Health Administration CU Closed
The State of Michigan Department of Insurance and Financial Services today liquidated Veterans Health Administration Credit Union of Detroit and named the National Credit Union Administration as liquidating agent.
Public Service Credit Union of Romulus, Michigan, immediately assumed Veterans Health Administration Credit Union’s members, assets, and loans and shares.
The Department of Insurance and Financial Services made the decision to liquidate Veterans Health Administration 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 time of liquidation and subsequent purchase by Public Service Credit Union, Veterans Health Administration Credit Union served 1,297 members and had assets of $2 million, according to the credit union’s most recent Call Report. According to the credit union's Financial performance Report, it experienced a significant drop in asset size during the fourth quarter, as assets fell by 46 percent.
Veterans Health Administration Credit Union is the fourth federally insured credit union liquidation in 2016.
Read the press release.
Public Service Credit Union of Romulus, Michigan, immediately assumed Veterans Health Administration Credit Union’s members, assets, and loans and shares.
The Department of Insurance and Financial Services made the decision to liquidate Veterans Health Administration 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 time of liquidation and subsequent purchase by Public Service Credit Union, Veterans Health Administration Credit Union served 1,297 members and had assets of $2 million, according to the credit union’s most recent Call Report. According to the credit union's Financial performance Report, it experienced a significant drop in asset size during the fourth quarter, as assets fell by 46 percent.
Veterans Health Administration Credit Union is the fourth federally insured credit union liquidation in 2016.
Read the press release.
Saturday, February 6, 2016
CTK Credit Union Closed
The Wisconsin Office of Credit Unions served an order of liquidation on CTK Credit Union of Milwaukee and immediately appointed the National Credit Union Administration as liquidating agent.
The Wisconsin Office of Credit Unions made the decision to liquidate CTK Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
CTK Credit Union was a federally insured, state-chartered credit union that served 397 members and had assets of $163,197, according to the credit union’s most recent Call Report.
CTK Credit Union reported 4 consecutive years of losses. As of the end of 2015, the credit union was undercapitalized with a net worth ratio of 5.88 percent and had a delinquent loan ratio of 22.98 percent.
CTK Credit union is the first credit union to be liquidated in 2016.
Read NCUA's press release.
The Wisconsin Office of Credit Unions made the decision to liquidate CTK Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
CTK Credit Union was a federally insured, state-chartered credit union that served 397 members and had assets of $163,197, according to the credit union’s most recent Call Report.
CTK Credit Union reported 4 consecutive years of losses. As of the end of 2015, the credit union was undercapitalized with a net worth ratio of 5.88 percent and had a delinquent loan ratio of 22.98 percent.
CTK Credit union is the first credit union to be liquidated in 2016.
Read NCUA's press release.
Monday, February 1, 2016
NCUA Assisted in Merging Conserved Montgomery County CU into Bridge CU
The National Credit Union Administration (NCUA) announced today that Montgomery County Credit Union of Dayton, Ohio, was merged into Bridge Credit Union of Columbus, Ohio, effective January 31, 2016 with NCUA's assistance.
Superintendent of the Ohio Division of Financial Institutions placed Montgomery County Credit Union into conservatorship on April 23, 2015, and appointed NCUA as agent for the conservator.
Montgomery County CU reported a loss of almost $540,000 for all of 2015. In the fourth quarter of 2015, the credit union reported negative share (deposit), asset, membership, loan, and net worth growth.
The two agencies worked together to address issues affecting the credit union’s safety and soundness and determined that merging Montgomery County Credit Union into Bridge Credit Union was in the best interests of members.
The assisted merger resulted in no cost to the National Credit Union Share Insurance Fund.
Read the press release.
Superintendent of the Ohio Division of Financial Institutions placed Montgomery County Credit Union into conservatorship on April 23, 2015, and appointed NCUA as agent for the conservator.
Montgomery County CU reported a loss of almost $540,000 for all of 2015. In the fourth quarter of 2015, the credit union reported negative share (deposit), asset, membership, loan, and net worth growth.
The two agencies worked together to address issues affecting the credit union’s safety and soundness and determined that merging Montgomery County Credit Union into Bridge Credit Union was in the best interests of members.
The assisted merger resulted in no cost to the National Credit Union Share Insurance Fund.
Read the press release.
Wednesday, January 20, 2016
Internet Archive FCU Voluntarily Liquidating, Insured Shares Paid in Full
The National Credit Union Administration (NCUA) announced that Internet Archive FCU (New Brunswick, NJ) paid all insured shares in full on January 20.
The press release noted that NCUA initiated cease-and-desist order proceedings on Nov. 24, 2015 in order to prevent the credit union from committing unsafe and unsound practices and violations of law, rule, and regulation.
NCUA cited the credit union for ongoing deficiencies, including an unwillingness to open accounts within the field of membership, make loans, and establish operations in the low-income community where the credit union was chartered to serve; violations of the Bank Secrecy Act and USA PATRIOT Act; and weakening financial conditions and mounting losses.
NCUA also outlined numerous remedial actions to be taken by the credit union.
The credit union's board recommended that the credit union liquidate and the members voted affirmatively to liquidate the credit union on December 8, 2015. NCUA approved the voluntary liquidation plan on January 6, 2016.
Read the press release.
The press release noted that NCUA initiated cease-and-desist order proceedings on Nov. 24, 2015 in order to prevent the credit union from committing unsafe and unsound practices and violations of law, rule, and regulation.
NCUA cited the credit union for ongoing deficiencies, including an unwillingness to open accounts within the field of membership, make loans, and establish operations in the low-income community where the credit union was chartered to serve; violations of the Bank Secrecy Act and USA PATRIOT Act; and weakening financial conditions and mounting losses.
NCUA also outlined numerous remedial actions to be taken by the credit union.
The credit union's board recommended that the credit union liquidate and the members voted affirmatively to liquidate the credit union on December 8, 2015. NCUA approved the voluntary liquidation plan on January 6, 2016.
Read the press release.
Sunday, August 16, 2015
Two NCUA Assisted Mergers in July
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.
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.
Thursday, August 6, 2015
Tiny Faith Based Virginia CU Voluntarily Liquidates
The National Credit Union Administration announced the voluntary liquidation of New Bethel Federal Credit Union of Portsmouth, Virginia.
NCUA placed New Bethel Federal Credit Union into conservatorship on April 30, 2015. The decision to voluntarily liquidate New Bethel and discontinue its operations was made after determining the credit union was unable to restore viable operations.
New Bethel served 172 members and had assets of $101,630, according to the credit union’s most recent Call Report.
Read the press release.
NCUA placed New Bethel Federal Credit Union into conservatorship on April 30, 2015. The decision to voluntarily liquidate New Bethel and discontinue its operations was made after determining the credit union was unable to restore viable operations.
New Bethel served 172 members and had assets of $101,630, according to the credit union’s most recent Call Report.
Read the press release.
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