ALEXANDRIA, Va.–Fourteen years after placing U.S. Central Credit Union into conservatorship as part of the corporate credit union crisis, NCUA is distributing $76 million to paid-in capital shareholders of the former corporate CU, the agency said.
As liquidating agent of the former corporate credit unions’ asset management estates, the agency noted it has previously made six rounds of distributions. In 2020, 2021, 2022, and earlier in 2023, capital holders of the former Southwest Corporate, Members United Corporate, Constitution Corporate, and U.S. Central have received distributions.
The current distribution is scheduled to occur before the end of September 2023 to the PIC shareholders of U.S. Central, which was known as the “corporates’ corporate” and based in Overland Park, Kan.
With this seventh distribution, NCUA said it will have returned $2.8 billion to former membership and paid-in capital shareholders and more than $360 million in dividends to shareholders.
‘Highly Successful Efforts’
“This distribution represents the latest example of the NCUA staff’s highly successful efforts to resolve the corporate crisis and return funds to capital holders,” Chairman Todd M. Harper said iin a statement. “With this distribution, like the others before it, the NCUA encourages recipients to use these funds to increase access to safe, fair, and affordable financial products and services, especially in under-resourced communities. Credit unions can also use these funds to assist members experiencing economic hardship.
Additional Info
The distribution is part of the Corporate System Resolution Program, the initiative established by the NCUA board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis.
Additional information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims, as well as the process for determining the timing of distributions to member capital account holders, is available on the NCUA’s website.