The nation’s credit union regulator has seized six federally insured credit unions and shut them all down. While there was a recent bank failure, credit unions remain the problem.
On March 11, the Wisconsin Department of Financial Institutions took control of
North Milwaukee State Bank. The Milwaukee-based company was established in February 1971.
North Milwaukee had 17 employees at last count.
It had $62 million in deposits and $67 million in assets including $7 million in residential loans and $31 million in commercial mortgages.
It was the
first bank failure of the year and expected to cost the Federal Deposit Insurance Corp.’s Deposit Insurance Fund $10 million.
A statement Tuesday said the National Credit Union Administration closed and liquidated six credit unions today.
All six financial institutions are located in the Philadelphia area.
The decision to liquidate the credit unions and discontinue operations followed a determination that each was
insolvent and had no prospect for restoring viable operations.
First on the list was Cardozo Lodge Federal Credit Union. After that was
Electrical Inspectors Federal Credit Union, O P S EMP Federal Credit Union, Servco Federal Credit Union and Triangle Interests.
All five of the credit unions were in Bensalem.
Chester Upland School Employees Federal Credit Union, which was located in Chester, was the sixth.
Each of the credit unions had fewer than a thousand members. Assets ranged from
$0.7 million to $2.2 million.
The Michigan Department of Insurance and Financial Services liquidated Veterans Health Administration Credit Union on March 29 and named the NCUA as liquidating agent. The failed credit union’s members, assets, loans and shares were assumed by Public Service Credit Union.
The state had determined that
the 1,297-member institution was insolvent and had no chance of restoring viable operations. Assets at Detroit-based Veterans Health Administration totaled $2 million.
Washington-based Education Associations Federal Credit Union was liquidated on March 4 by the NCUA due to its insolvency and inability to restore viable operations. it had just 665 members and $2.6 million in assets.
On Feb. 24,
Mildred Mitchell-Bateman Hospital Federal Credit Union was liquidated by the NCUA. The Huntington, West Virginia, organization had only 57 members and less than $0.1 million in assets.
“NCUA made the decision to liquidate Mildred Mitchell-Bateman Hospital Federal Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.”
the regulator stated.
On March 31, the NCUA reported that Montauk Credit Union was merged into Bethpage Federal Credit Union. Montauk was originally seized in September 2015 by the New York Department of Financial Services.
“As conservator, NCUA determined that merging Montauk into Bethpage was in the best interests of its members,” the NCUA explained.
In Clarkston, Michigan,
Clarkston Brandon Community Credit Union was merged into Michigan State University Federal Credit Union on March 25. It had 8,536 members and $69 million in assets.
Clarkston Brandon was originally placed into conservatorship by
Michigan Department of Insurance and Financial Services on Jan. 13.
Mortgage Daily has tracked the demise of 13 credit unions so far during 2016.
Including banks, credit unions and non-banks — Mortgage Daily has tracked 18 mortgage-related business closings or failures this year.
