ALEXANDRIA, Va.–One day after a board meeting at which NCUA confirmed the share deposit fund had paid out nearly three-quarters of a billion dollars during the third quarter to cover costs related to CU failures, the agency has provided an update on the half-dozen CUs that have failed in 2018.
In all, NCUA said the NCUSIF has paid out $744.9 million to cover losses, nearly all of which was caused by Melrose Credit Union.
As CUToday.info has previously reported, the biggest losses are related to credit unions such as Melrose that made taxi medallion loans on which the collateral has plummeted in value and in many cases borrowers simply stopped making payments.
The six failed CUs that required funds from the National Credit Union Share Insurance Fund (NCUSIF) include, in chronological order:
- St. Elizabeth’s Credit Union, Chicago, a tiny $140,000 CU liquidated in January. It was merged into NorthStar Credit Union.
- First Jersey CU, Wayne, N.J., which had $86 million in assets and just over 9,000 members. Liquidated in February, its assets and members were assumed by the $1.4-billion USALLIANCE FCU.
- Louisville Metro Police Officers CU, which had $20 million in assets at the time it was liquidated in June. Its members have since been assumed by the $1.1-billion Commonwealth CU, Frankfort, Ky. As CUToday.info reported here, fraud has been alleged at the credit union. Two lawsuits are also pending against the former CU.
- Greater Christ Baptist Church CU, Detroit, which had just $608,000 in assets when it was liquidated in July.
- Melrose Credit Union in Briarwood, N.Y., a taxi medallion lender that is one of the largest-ever CUs liquidated by NCUA. At the time of its closure in August, Melrose had $1.1 billion in assets and nearly 20,000 members. Those members, as well as some loans and other assets, were assumed by the $6.1 billion Teachers FCU.
- LOMTO Credit Union in New York, which was also primarily a taxi medallion lender. At the time it was liquidated in October, it had approximately $156-million in assets and just over 2,200 members. Like Melrose, some of its assets and loans have been assumed by Teachers Credit Union.
“The NCUA continues to evaluate all courses of action that will maximize potential recoveries from the assets of the liquidated credit unions and minimize losses to the Share Insurance Fund,” the agency said in a statement. “The fund has sufficient equity and reserves to cover anticipated losses.”
For additional coverage on the status of the insurance fund, go here http://www.cutoday.info/site/Fresh-Today/NCUSIF-Pays-Out-Nearly-750-Million-To-Cover-Q3-Losses