(Jan. 7, 2022) NCUA closed out 2021 by liquidating a credit union, and started 2022 by merging a struggling California credit union with another in the Golden State.
Early this week, the agency announced that Pomona Postal Federal Credit Union (of Pomona), with assets of $4.08 million and 717 members, merged into the Credit Union of Southern California, Anaheim, as of Jan. 1. CU of Southern California had $2.2 billion in assets, and just under 130,000 members, as of the end of the third quarter, according to NCUA call report data.
Pomona Postal FCU was officially conserved by NCUA on Nov. 5. According to the agency, it worked to “address issues affecting the credit union’s safety and soundness,” but determined ultimately that merging Pomona Postal into the larger credit union “was in the best interests of its members.”
Last week, the agency announced it had liquidated Portsmouth Schools Federal Credit Union in Portsmouth, Va. The $2.2 million credit union, with 870 members, was chartered 80 years ago to serve teachers, employees, students, and family members of various schools within the Portsmouth, Va., public school system, NCUA noted. The agency gave no reason for the credit union’s liquidation. It was at least the fourth credit union to be shuttered by the agency in 2021.
Portsmouth’s assets, member shares and loans were assumed by BayPort Credit Union (which is apparently chartered as Newport News Shipbuilding Employees Credit Union, but operating under the BayPort name) of Newport News, Va. BayPort, NCUA said, had $2.2 billion in assets, and about 147,000 members, at the end of the third quarter.
LINKS:
Pomona Postal Federal Credit Union Merges into Credit Union of Southern California
(April 2, 2021) Two supervisory actions were taken this week, the first by NCUA as it closed one credit union (the first of the year) and by the Texas Credit Union Department which conserved another.
NCUA closed tiny Indianapolis’ Newspaper FCU (in Indianapolis), initially conserved in January, on Wednesday. The $6.4 million FCU (with 1,143 members) became the first federally insured credit union closed in 2021, NCUA said. It was chartered 60 years ago and served current and past employees of the Indianapolis Star and a few other select employee groups in the city. Elements Financial FCU, also of Indianapolis – a $2 billion credit union – assumed most of the credit union’s shares; however, a portion of shares was retained by the NCUA.
In January, NCUA said the credit union was conserved because of unsafe and unsound practices. This week, the agency said liquidation was necessary “after determining the credit union was insolvent and has no prospect for restoring viable operations on its own.”
Earlier in the week, NCUA announced it was named by the Texas Credit Union Department as conservator of the $106.2 million, 12,500-member Edinburg Teachers CU (of Edinburg, Texas). The credit union serves several education-based and other employee groups as well as their family members, according to NCUA.
In a release, NCUA said it and the TCUD would work to resolve operating issues at the credit union with the goal of protecting member assets and seeking a resolution to identified problems. “Neither the Texas Credit Union Department, nor the NCUA have made any decisions about the long-term future of the credit union; however, continued service to members is a priority,” the agencies said in a joint statement.
LINKS:
Indianapolis’ Newspaper Federal Credit Union Closes, Most Shares Assumed by Elements Financial