Six Credit Union Failures Results in Huge Loss to the National Credit Union Share Insurance Fund
Monday, November 19, 2018
NCUA released details on six credit union liquidations that resulted in the current loss. Although the loss is large, NCUA states the fund has sufficient equity and reserves to cover anticipated losses.
For more information, see NCUA’s list of Conservatorships and Liquidations.
Read the full NCUA article below.
Six Credit Union Failures Through Sept. 30
ALEXANDRIA, Va. (Nov. 16, 2018) – Six federally insured credit union liquidations in the first three quarters of 2018 resulted in a $744.9 million loss to the National Credit Union Share Insurance Fund.
The six liquidated credit unions were: St. Elizabeth’s Credit Union, First Jersey Credit Union, Louisville Metro Police Officers Credit Union, Greater Christ Baptist Church Credit Union, Melrose Credit Union, and LOMTO Federal Credit Union.
The NCUA maintains a Conservatorships and Liquidations webpage with more information.
At the NCUA’s Nov. 15 open Board meeting, the Chief Financial Officer reported $744.9 million in losses to the National Credit Union Share Insurance Fund due to the six credit union failures through Sept. 30. That figure is the loss calculated at the time each credit union was liquidated. The loss figure can change depending on the performance of the remaining assets of the credit unions.
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 fund has sufficient equity and reserves to cover anticipated losses.