I.C.E. FCU of Inglewood, Califorina

March 18, 2013 – 6:32 pm

The National Credit Union Administration, closed tiny  I.C.E. FCU of Inglewood, Califorina, making it the third federally insured credit union liquidation in 2013. The ailing credit union had assets of $3.4 million.

The National Credit Union Administration (NCUA) today liquidated I.C.E. Federal Credit Union of Inglewood, Calif. NCUA made the decision to liquidate I.C.E. Federal Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA’s Asset Management and Assistance Center will issue correspondence to individuals holding verified share accounts in the credit union within one week.

Members with additional questions about their insurance coverage may contact NCUA’s Consumer Assistance Center toll free at 800-755-1030. The Center answers calls Monday through Friday between 5 a.m. and 2 p.m. Pacific. Individuals may also visit the MyCreditUnion.gov website at any time for more information about their insurance coverage.

I.C.E. Federal Credit Union served 942 members and had assets of approximately $3.4 million, according to the credit union’s most recent Call Report. Chartered in 1939, I.C.E. Federal Credit Union served employees of the City of Inglewood and their immediate family members.

I.C.E. Federal Credit Union is the third federally insured credit union liquidation in 2013.

Amez United Credit Union of Detroit, Michigan

February 19, 2013 – 7:31 pm

Amez United Credit Union of Detroit, Michigan, was been shut down by  the Michigan Office of Financial and Insurance Regulation today and it’s carcass was fed to the National Credit Union Association as receiver. The tiny credit union  served about 160 members and had $168,000 in assets.

 The Michigan Office of Financial and Insurance Regulation (OFIR) today liquidated Amez United Credit Union of Detroit, Mich., and appointed the National Credit Union Administration (NCUA) as liquidating agent.

Amez United Credit Union members’ deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA’s Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the credit union within one week.

Members with questions about their insurance coverage may contact NCUA’s Consumer Assistance Center toll free at (800) 755-1030. The Center answers calls Monday through Friday between 8 a.m. and 5 p.m. Eastern. Individuals may also visit the MyCreditUnion.gov website at any time for more information about their insurance coverage.

OFIR made the decision to liquidate Amez United Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

Originally chartered in 1961, Amez United Credit Union served registered members of the churches in the Detroit district of the Michigan Conference of the African Methodist Episcopal Zion Church. Amez United Credit Union had 158 members and assets of approximately $168,865, according to its most recent Call Report.

Amez United Credit Union is the second federally insured credit union liquidation in 2013.

 

Covenant Bank, Chicago, Illinois

February 16, 2013 – 8:42 am

Covenant Bank, Chicago, Illinois, is the third FDIC-insured institution to fail in the nation in 2013. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $21.8 million.

Covenant Bank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Liberty Bank and Trust Company, New Orleans, Louisiana, to assume all of the deposits of Covenant Bank.

The sole branch of Covenant Bank will reopen during normal business hours as a branch of Liberty Bank and Trust Company. Depositors of Covenant Bank will automatically become depositors of Liberty Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Covenant Bank should continue to use their current branch until they receive notice from Liberty Bank and Trust Company that systems conversions have been completed to allow full-service banking at all branches of Liberty Bank and Trust Company.

This evening and over the weekend, depositors of Covenant Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2012, Covenant Bank had approximately $58.4 million in total assets and $54.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Liberty Bank and Trust Company agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-830-4732. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8:00 a.m. to 8:00 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have ant further questions please do not hesitate to visit the FDIC web page for Covenant Bank.

Community Development Federal Credit Union

February 11, 2013 – 4:06 pm

Community Development Federal Credit Union, is the second first  insured credit union to be placed into  conservatorship in 2013, as The National Credit Union Administration (NCUA) has assumed control of service and operations.  The members held approximately $2 million in assets.

 The National Credit Union Administration (NCUA) today assumed control of service and operations at NCP Community Development Federal Credit Union of Norfolk, Va.

NCUA will work to resolve issues affecting the institution’s safety and soundness while continuing normal member services. Deposits at NCP Community Development Credit Union remain protected. Administered by NCUA, the National Credit Union Share Insurance Fund continues to insure individual accounts at NCP Community Development Federal Credit Union up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the U.S. Government.

NCP Community Development Federal Credit Union is a full-service financial institution with $2 million in assets, according to its most recent Call Report. NCP has served a low-income community in the Hampton Roads area for 14 years. Service to NCP Community Development Federal Credit Union’s 709 members will continue uninterrupted. Members can continue to conduct normal financial transactions, including deposit and access funds, make loan payments and use shares.
The decision to conserve a credit union enables the institution to continue regular operations with expert management in place, correcting previous service and operational weaknesses. The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the Share Insurance Fund. NCP Community Development Federal Credit Union is the first federally insured credit union placed into conservatorship in 2013.
Members who have questions about the conservatorship may review the NCP Community Development Federal Credit Union Frequently Asked Questions document attached to this release and found online here.

First Minnesota Bank, Minnetonka, Minnesota, Assumes All of the Deposits of 1st Regents Bank, Andover, Minnesota

January 18, 2013 – 10:27 pm

First Minnesota Bank, Minnetonka, Minnesota, Assumes All of the Deposits of 1st Regents Bank, Andover, Minnesota, is the second FDIC bad bank hit list for 2013. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.5 million.

1st Regents Bank, Andover, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Minnesota Bank, Minnetonka, Minnesota, to assume all of the deposits of 1st Regents Bank.

Depositors of 1st Regents Bank’s sole branch will automatically become depositors of First Minnesota Bank. The drive-through facility of 1st Regents Bank will reopen on Saturday under normal business hours, but due to the Martin Luther King, Jr. holiday, the bank’s lobby will reopen on Tuesday at its usual time. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of 1st Regents Bank should continue to use their existing branch until they receive notice from First Minnesota Bank that it has completed systems changes to allow other First Minnesota Bank branches to process their accounts as well.

This evening and over the weekend, depositors of 1st Regents Bank can access their money by writing checks or using debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2012, 1st Regents Bank had approximately $50.2 million in total assets and $49.1 million in total deposits. First Minnesota Bank will pay the FDIC a premium of two percent to assume all of the deposits of 1st Regents Bank. In addition to assuming all of the deposits of the failed bank, First Minnesota Bank agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-886-2504. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8 a.m. to 8 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have ant further questions please do not hesitate to visit the FDIC web page for First Minnesota Bank.

Westside Community Bank, University Place, Washington

January 11, 2013 – 9:27 pm

Westside Community Bank, University Place, Washington, is number one on the FDIC bad bank hit list for 2013. The agency  seized the small lender in Washington state, making it the first U.S. bank failure of 2013after 51 closures last year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.3 million.

Westside Community Bank, University Place, Washington, was closed today by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sunwest Bank, Irvine, California, to assume all of the deposits of Westside Community Bank.

The two branches of Westside Community Bank will reopen on Monday as branches of Sunwest Bank. Depositors of Westside Community Bank will automatically become depositors of Sunwest Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Westside Community Bank should continue to use their existing branch until they receive notice from Sunwest Bank that it has completed systems changes to allow other Sunwest Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Westside Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2012, Westside Community Bank had approximately $97.7 million in total assets and $96.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-830-4705. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; on Monday from 8 a.m. to 8 p.m., PST; and thereafter from 9:00 a.m. to 5:00 p.m., PST.

If you should have ant further questions please do not hesitate to visit the FDIC web page for Westside Community Bank.

 

New Covenant Missionary Baptist Church Credit Union, Milwaukee, Wisconsin

January 8, 2013 – 8:51 am

New Covenant Missionary Baptist Church Credit Union, Milwaukee, Wisconsin, is the first  liquidation of a federally insured credit union in 2013. The members held assets of approximately $585,000.

The Wisconsin Office of Credit Unions liquidated New Covenant Missionary Baptist Church Credit Union (New Covenant) of Milwaukee, Wis., today and appointed the National Credit Union Administration (NCUA) as liquidating agent.

Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. Members with questions about their insurance coverage may contact NCUA’s Consumer Assistance Center toll free at 800-755-1030. The Center answers calls Monday through Friday between 7 a.m. and 4 p.m. Central. Individuals may also visit the MyCreditUnion.gov website at any time for more information about their insurance coverage.

The Wisconsin Office of Credit Unions made the decision to liquidate New Covenant after determining the credit union was in an unsafe and unsound condition to transact its business and had no prospect of restoring viable operations.

Originally chartered in 1982, New Covenant was a state-chartered, federally insured credit union serving 294 members and had assets of approximately $585,000, according to the credit union’s most recent Call Report. New Covenant served members of the New Covenant Missionary Baptist Church and related groups at the time of closure.

New Covenant Missionary Baptist Church Credit Union is the first federally insured credit union liquidation in 2013.

Chetco FCU of Harbor, Oregon

January 2, 2013 – 6:25 pm

Chetco FCU of Harbor, Oregon, moves from the frying pan to the fire as the National Credit Union Administration announced Friday that it had dived the carcass among two other credit unions. The failure of  Chetco FCU brings to 14 the number of failures in 2012.

The NCUA announced late Friday that after 15 months in conservatorship, it will liquidate the $259 million Chetco FCU of Harbor, Ore., effective Dec. 31.

Assets will be split between two successful bidders: the $960 million Coast Central Credit Union of Eureka, Calif., and the $583 million Rogue FCU of Medford, Ore.

The 56,000-member Rogue will purchase and assume Chetco’s five Oregon branches and memberships, while the 55,000-member Coast Central will purchase and assume the Crescent City, Calif. branch and California memberships.

Rogue and Coast Central will reopen Chetco’s former Oregon and California branches, respectively, Jan. 2, 2013, the NCUA said.

Chetco’s fortunes turned south in 2010, when the credit union posted a nearly $17 million net loss, fueled by nearly $18 million in loan loss provisions, according to NCUA Financial Performance Reports posted online.

Loan delinquencies, primarily in commercial real estate lending, skyrocketed during 2010, increasing from 2.07% as of year-end 2009 to 10.41% just one year later. During that same period, net worth plunged from 9.07% to 5.01%.

The board attempted to right the ship in 2011, hiring Diane Johnson as CEO in July. However, the NCUA placed Chetco into conservatorship Sept. 23, 2011, and replaced Johnson with Gary Jester, who dusted off his suit after previously retiring from the $1 billion Advancial FCU of Dallas. By Dec. 31, 2011, Chetco was $34.5 million in the red with -6.44% net worth and 18.76% delinquencies.

Jester was able to apply a tourniquet to the bleeding, posting a relatively mild $525,973 net loss as of Sept. 30 of this year. However, loan losses were just too much to overcome: Chetco reported 23.81% delinquencies as of Sept. 30 and -7.31% net worth.

As of Sept. 30, the majority of Chetco’s $60 million in reportable delinquencies were adjustable rate mortgages, numbering nearly $46 million. Another $12 million in fixed rate mortgages were also reported.

The credit union also reported that $33 million of its delinquent loans were business loans, and nearly $13 million were participation loans.

Chartered in 1957, Chetco was a community credit union serving people who live, work or worship in Coos and Curry counties in Oregon and Del Norte County in California. At the time of liquidation and subsequent purchase and assumption by Rogue and Coast Central, Chetco served 24,926 members and had approximately $259 million in deposits.

Chetco is the fourteenth federally insured credit union liquidation in 2012.

Olean Tile Employees Federal Credit Union, Olean, N.Y.

December 17, 2012 – 7:41 pm

Olean Tile Employees Federal Credit Union, Olean, N.Y.,was shuttered today by the National Credit Union Administration (NCUA). Olean Tile Employees Federal Credit Union is the thirteenth federally insured credit union liquidation in 2012 and the second credit union headquartered in New York to fail this year.

Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA’s Asset Management and Assistance Center will issue correspondence to individuals holding verified share accounts in the credit union within one week.

Members with additional questions about their insurance coverage may contact NCUA’s Consumer Assistance Center toll free at 800-755-1030. The Center answers calls Monday – Friday between 8 a.m. and 5 p.m. Eastern. Individuals may also visit the MyCreditUnion.gov website at any time for more information about their insurance coverage.

Olean Tile Employees Federal Credit Union served 550 members and had assets of approximately $778,139, according to the credit union’s most recent Call Report. Chartered in 1936, Olean Tile Employees Federal Credit Union was a full-service financial institution that served the employees of the Olean Tile Company for 76 years.

Community Bank of the Ozarks, Sunrise Beach, MO

December 15, 2012 – 3:49 am

Community Bank of the Ozarks, Sunrise Beach, MO, is the 51st FDIC-insured institution to fail in  nationwide in 2012. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.4 million.

Community Bank of the Ozarks, Sunrise Beach, Missouri, was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Sullivan, Sullivan, Missouri, to assume all of the deposits of Community Bank of the Ozarks.

The two branches of Community Bank of the Ozarks will reopen on Saturday as branches of Bank of Sullivan. Depositors of Community Bank of the Ozarks will automatically become depositors of Bank of Sullivan. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Community Bank of the Ozarks should continue to use their existing branch until they receive notice from Bank of Sullivan that it has completed systems changes to allow other Bank of Sullivan branches to process their accounts as well.

This evening and over the weekend, depositors of Community Bank of the Ozarks can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2012, Community Bank of the Ozarks had approximately $42.8 million in total assets and $41.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank of Sullivan agreed to purchase essentially all of the assets.

The FDIC and Bank of Sullivan entered into a loss-share transaction on $37.3 million of Community Bank of the Ozarks’ assets. Bank of Sullivan will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at  1-800-830-6698. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8 a.m. to 8 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have ant further questions please do not hesitate to visit the FDIC web page for Community Bank of the Ozarks.