BRONX, N.Y.– NCUA has liquidated Bethex FCU. The $1.07-billion USAlliance Federal Credit Union of Rye, N.Y. has assumed Bethex FCU’s assets, member shares and most loans. At the time of liquidation, Bethex served 5,824 members and had assets of $12.2 million. Chartered in 1970, Bethex Federal Credit Union served various groups in New York City and was a well-known CDFI serving low-income communities. The credit union was founded by the equally well-known Joy Cousminer, who was the CU’s CEO up until NCUA placed Bethex in conservatorship in September. Cousminer is a member of the Cooperative Hall of Fame and was honored with credit unions’ highest honor, the Herb Wegner Award.
Since 2013, the CU’s net income losses have mounted, losing $481,950 in 2013, $867,108 in 2014, and $787,603 through the first half of this year. Capital fell sharply in 2015, dropping from 11.37% at the close of 2014 to 5.75% through June.
The CU’s financials also show a significant spike in income that began more than five years ago—as much as $2 million in “other income”—but then a big decline, suggesting Bethex Credit Union may have sought new revenue sources that dried up.
Lending suffered as well in recent years, with delinquencies skyrocketing to 17.44% in 2014 and 15.35% through June.
The CU’s 2015 summer newsletter reflected almost a sense of desperation from Bethex about its future.
“It’s been a rough 5 years for Bethex. Our assets have dropped, our income has fallen and our expenses have risen, so we’re turning to you, our members, to take advantage of our staff’s fund raising efforts this summer,” the newsletter stated. “We will have raffles, new and used jewelry for sale, a bake sale, items for sale at the teller windows and lots more. If you want to contribute items we can sell, we appreciate it. We look forward to you buying what we will be offering. It’s your credit union, let’s have fun fundraising!”