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.
Tuesday, November 29, 2016
Monday, November 28, 2016
IBM Southeast Employee Credit Union to Acquire Florida Bank
Another small bank is being acquired by a large credit union.
It is being reported that IBM Southeast Employee Credit Union (Delray Beach, FL) has filed an application to acquire Boynton Beach-based Mackinac Savings Bank.
IBM Southeast Employee Credit Union has $947 million in assets and 16 branches, according to its most recent call report.
In comparison, Mackinac Savings Bank reported 3 branches and $109.5 million in assets as of September 30.
The deal still requires regulatory approval and the transaction price was not disclosed.
Read the story.
It is being reported that IBM Southeast Employee Credit Union (Delray Beach, FL) has filed an application to acquire Boynton Beach-based Mackinac Savings Bank.
IBM Southeast Employee Credit Union has $947 million in assets and 16 branches, according to its most recent call report.
In comparison, Mackinac Savings Bank reported 3 branches and $109.5 million in assets as of September 30.
The deal still requires regulatory approval and the transaction price was not disclosed.
Read the story.
Bankruptcy Filing Affidavit Claims the Price of NYC Taxi Medallions As Low As $250,000
A recent Chapter 11 bankruptcy filing of a taxi medallion owner placed the value for New York City (NYC) taxi medallions as low as $250,000.
Evgeny Freidman on November 14 filed for bankruptcy protection regarding three New York City taxi medallions.
According to the affidavit, the entry of Uber and Lyft into the New York market has caused taxi revenues to fall by 45 percentt,
As a result, "Medallion owners ... can no longer demand the $2,000 or $2,500 per month rent per Medallion lease." The going lease rate is now about $1,500 per month.
This decline in revenues has caused taxi medallion values to plummet precipitously.
According to the affidavit,
If the price of taxi medallions is $250,000, this could signify large potential losses to the National Credit Union Share Insurance Fund from undercapitalized taxi medallion lending credit unions.
Read the court filing.
Evgeny Freidman on November 14 filed for bankruptcy protection regarding three New York City taxi medallions.
According to the affidavit, the entry of Uber and Lyft into the New York market has caused taxi revenues to fall by 45 percentt,
As a result, "Medallion owners ... can no longer demand the $2,000 or $2,500 per month rent per Medallion lease." The going lease rate is now about $1,500 per month.
This decline in revenues has caused taxi medallion values to plummet precipitously.
According to the affidavit,
The current value of the Medallions is based on sales, and is difficult to determine, but without question it has fallen precipitously since the February 2014 TLC auction prices. Based on some recent auction results, the value is perhaps as low as $250,000 each, but certainly, in my opinion, no more than $500,000 each.
If the price of taxi medallions is $250,000, this could signify large potential losses to the National Credit Union Share Insurance Fund from undercapitalized taxi medallion lending credit unions.
Read the court filing.
Wednesday, November 23, 2016
Rep. Mulvaney Troubled by $1 Billion in Legal Fees Paid by NCUA
Representative Mick Mulvaney (R - SC) wrote National Credit Union Administration (NCUA) Chairman Metsger on November 21 that he was troubled by the $1 billion in legal fees paid by the agency on $4.3 billion in recoveries associated with lawsuits over the sale of faulty mortgage-backed securities to five failed corporate credit unions.
Rep. Mulvaney wrote that "[m]ore prudent action in this matter may have saved the credit union industry millions of dollars."
Rep. Mulvaney has requested answers from the agency to three questions within 30 days:
Read the letter below (click on image to enlarge).
Rep. Mulvaney wrote that "[m]ore prudent action in this matter may have saved the credit union industry millions of dollars."
Rep. Mulvaney has requested answers from the agency to three questions within 30 days:
- Why did the agency pursue these cases under contingency fee arrangements?
- What was the original analysis of why this was the better approach?
- Has there been a post-settlement analysis to see if this was actually the best approach financially given the outcomes?
Read the letter below (click on image to enlarge).
Tuesday, November 22, 2016
Regional and Community Banks Top CUs in Customer Satisfaction
The American Customer Satisfaction Index (ACSI) reported that regional and community banks topped credit unions in customer satisfaction.
Regional and community banks had a combined score of 83, up 3.8 percent from a year ago. When super-regional banks and money center banks are included the industry's combined score was 80 -- up 5.3 percent from a year ago.
In comparison, credit unions edge up 1.2 percent to 82, slightly below the industry’s long-term average.
The report noted that strong membership growth at credit unions was putting a strain on the customer experience at credit unions.
Areas experiencing deterioration at credit unions were call centers, variety of financial services, and convenience.
The score for call centers fell 2 percent to 83.
In addition, members reported a slight drop in the availability of a variety of financial services, which fell from a score of 84 to 83.
Also, credit union members' assessment of the number and location of branches fell 3 percent to 68. The report further noted that credit union members wanted greater access to ATMs, as this benchmark fell 7 percent from a year ago to 67.
The report further noted that there was no change in customer experience in six areas, including courtesy and helpfulness of staff, satisfaction with website, and the speed in which transactions were completed.
Read the press release.
Regional and community banks had a combined score of 83, up 3.8 percent from a year ago. When super-regional banks and money center banks are included the industry's combined score was 80 -- up 5.3 percent from a year ago.
In comparison, credit unions edge up 1.2 percent to 82, slightly below the industry’s long-term average.
The report noted that strong membership growth at credit unions was putting a strain on the customer experience at credit unions.
Areas experiencing deterioration at credit unions were call centers, variety of financial services, and convenience.
The score for call centers fell 2 percent to 83.
In addition, members reported a slight drop in the availability of a variety of financial services, which fell from a score of 84 to 83.
Also, credit union members' assessment of the number and location of branches fell 3 percent to 68. The report further noted that credit union members wanted greater access to ATMs, as this benchmark fell 7 percent from a year ago to 67.
The report further noted that there was no change in customer experience in six areas, including courtesy and helpfulness of staff, satisfaction with website, and the speed in which transactions were completed.
Read the press release.
Monday, November 21, 2016
Summit CU Seeks to Build New 130,000 Square Foot Headquarters Building
Summit Credit Union is negotiating with Cottage Grove Planning Commission and other agencies to build its new corporate headquarters in Cottage Grove, Wisconsin.
The proposed 130,000 square foot building would be on 11 acres and would house 250 employees.
The preliminary plan includes underground parking for 90 vehicles and surface parking for another 400.
If the building is approved, it will be designed in 2017, built in 2018 and opened no later than 2020.
Read the story.
The proposed 130,000 square foot building would be on 11 acres and would house 250 employees.
The preliminary plan includes underground parking for 90 vehicles and surface parking for another 400.
If the building is approved, it will be designed in 2017, built in 2018 and opened no later than 2020.
Read the story.
Saturday, November 19, 2016
Meritrust CU Signs Letter of Intent to Buy 10-Story Building
Meritrust Credit Union has signed a letter of intent to purchase the Cargill Protein building in downtown Wichita.
Meritrust expects to move roughly 150 administrative and support positions to the 10-story, 110,000-square-foot building.
The credit union stated that it has grown rapidly in recent years and its administrative office has become too small to support its staff.
Details on the offer for the building have not been disclosed.
Read the story.
Meritrust expects to move roughly 150 administrative and support positions to the 10-story, 110,000-square-foot building.
The credit union stated that it has grown rapidly in recent years and its administrative office has become too small to support its staff.
Details on the offer for the building have not been disclosed.
Read the story.
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