ALEXANDRIA, Va. –NCUA has announced a $313 million distribution to more than 400 membership and paid in capital shareholders of the former Members United, Constitution, and U.S. Central corporate credit unions.
The agency said it will also distribute $82 million in dividends to more than 1,100 shareholders of the former Southwest Corporate Credit Union, which is now Catalyst Corporate. NCUA completed capital distributions to Southwest Corporate capital holders last year.
“The NCUA has reached another milestone in winding down the remaining asset management estates under the successful Corporate System Resolution Program,” Chairman Todd M. Harper said in a statement. “Thanks to the diligent efforts of the NCUA team over more than a decade, we continue to fulfill our fiduciary responsibility to return these funds to capital holders. As a result, the federally insured credit unions receiving these distributions will have the capacity to lend more and better offer safe, fair, and affordable financial products. That is good for credit union members and for our economy.”
As liquidating agent of the former corporate credit unions’ asset management estates, NCUA noted it has previously made four rounds of distributions. In 2020, 2021, and the first quarter of 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central.
“The distribution announced today is scheduled to occur before the end of September 2022,” NCUA said.
With this fifth distribution, NCUA said it has returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 million in dividends to shareholders.
Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.
An overview of the resolution program is seen in the chart below.