EDINBURG, Texas.– The Texas Department of Credit Unions has declined comment to CUToday.info regarding any investigation that may be taking place related to the liquidation of County & Municipal Employees Credit Union here.
As is customary in liquidations, late on Friday, Oct. 10, representatives of the Texas CU Department and NCUA shuttered the $40.3-million credit union, with the $2.1-billion Navy Army Community Credit Union of Corpus Christi, Texas, has assumed the CU’s members, assets, shares and selected loans.
According to June Call Report data, County & Municipal suffered huge losses this year--$3.4 million, after reporting losses of $656,553 in 2013. Net worth plummeted from 7.90% in 2013 to 0.85% through June. Delinquent loans had reached 21%, net charge-offs 8.9%, and ROA fell to -10.31. The CU’s allowance for loan loss reserves increased from $680,740 in 2012 to $2.5 million in 2013 and $3.4 million through June of this year. Cash and equivalents jumped from $2.4 million in 2012 to $8.9 million in 2013 and $15.7 million through June.
County & Municipal served employees of multiple political divisions and public service units as well as persons residing, working or worshiping in Hidalgo County, Texas.
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