November 13, 2009, Alexandria, Va. – The National Credit Union Administration (NCUA) today closed Ensign Federal Credit Union of Henderson, Nevada, and authorized the purchase and assumption (P&A) of member share accounts by EDS Credit Union of Plano, Texas.

The EDS Credit Union P&A enables Ensign Federal Credit Union members to continue to receive uninterrupted credit union service. Ensign’s declining financial condition led to the closure and subsequent P&A. Ensign Federal Credit Union had $98 million in assets and served 7,900 members. This is the 13th federally insured credit union liquidation in 2009.

EDS Credit Union is a full service credit union and its new members will have access to a broad array of financial services offered throughout a wide service area. With assets of $772 million, EDS Credit Union serves approximately 57,000 members in various states throughout the country. The headquarters office is located at 5640 Democracy Drive in Plano, Texas. EDS Credit Union has 15 branch offices serving members throughout its service area. The credit union also offers online transaction service.

Member accounts are insured to at least $250,000 by the National Credit Union Share Insurance Fund, a federal insurance fund backed by the full faith and credit of the U.S. Government.

The National Credit Union Administration (NCUA) was appointed liquidating agent of the Second Baptist Church Credit Union (Second Baptist) of Los Angeles by the California Department of Financial Institutions (DFI) on October 28, 2009.
Prosperity Federal Credit Union (Prosperity) of Rancho Domingue, California, formerly Shell Southwest Federal Credit Union, purchased and assumed Second Baptist loans and shares, which enables its 340 members to continue to receive uninterrupted credit union service. Established in 1955 to serve Second Baptist employees and members, the credit union was closed because it is insolvent. This is the 12th federally insured credit union liquidated in 2009.
Prosperity Federal Credit Union has $14.4 million in assets and serves approximately 2,900 members. It is located at 2200 West Aratesia Blvd., Suite 206, Rancho Domingue, California. Member accounts are federally insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF)

The National Credit Union Administration (NCUA) announces today that Security Service Federal Credit Union, of San Antonio, Texas, has purchased the assets and assumed the member shares of liquidated West Texas Credit Union of El Paso, Texas.

The Texas Credit Union Department liquidated West Texas Credit Union September 30, 2009, and discontinued its operation after determining the credit union was insolvent and has no prospects for restoring viable operations. At the time of liquidation, West Texas Credit Union had approximately $78 million in assets and served 25,000 members.

The Texas Credit Union Department chartered West Texas Credit Union in 1964 to serve State Employees in the West Texas Area. This is the 11th federally insured credit union liquidation in 2009.

These new Security Service Federal Credit Union members will continue to receive convenient, uninterrupted service. Security Service Federal Credit Union member accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), an entity of the federal government operated by NCUA.

Security Service Federal Credit Union is a federally chartered, federally insured institution headquartered in San Antonio, Texas. Chartered in 1956 to serve United States Air Force Security Service Command employees, it is a full service, $5 billion credit union with more than 680,000 members located throughout the United States.

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The National Credit Union Administration (NCUA) today liquidated The Members’ Own Federal Credit Union of Victorville, California, and accepted Alaska USA Federal Credit Union’s offer to purchase and assume the credit union.

Alaska USA Federal Credit Union purchased and assumed The Members’ Own Federal Credit Union’s assets, loans and shares, enabling The Members’ Own members to continue to receive uninterrupted credit union service. The Members’ Own Federal Credit Union’s declining financial condition led to its closure and subsequent purchase and assumption by Alaska USA Federal Credit Union. The Members’ Own Federal Credit Union had $85 million in assets and served 11,000 members.

Alaska USA Federal Credit Union is a full service credit union and its new members will have access to a broad array of financial services offered throughout the United States. With assets of $4.1 billion, Alaska USA FCU serves approximately 375,000 members located throughout the country. Alaska USA has 56 branch locations in Alaska, California, and Washington and also serves its members through over 5,600 shared service locations nationwide.

Member accounts are insured to at least $250,000 by the National Credit Union Share Insurance Fund, a federal insurance fund backed by the full faith and credit of the U.S. Government. This is the 10th federally insured credit union liquidation in 2009.

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The National Credit Union Administration (NCUA) today accepted appointment as liquidating agent of Clearstar Financial Credit Union, in Reno Nevada, following the Nevada Division of Financial Institution’s decision to close the credit union effective September 25, 2009.

United Federal Credit Union purchased and assumed Clearstar Financial Credit Union’s assets, loans and shares, enabling Clearstar’s members to continue to receive uninterrupted credit union service. Clearstar Financial Credit Union’s declining financial condition led to the closure and subsequent purchase and assumption by United Federal Credit Union. Clearstar Financial Credit Union had $144 million in assets and served 16,000 members.

United Federal Credit Union is a full service credit union and its new members will have access to a broad array of financial services offered throughout a wide service area. With assets of $941 million, United FCU serves approximately 78,000 members from employee and associational groups in various states throughout the country. The headquarters office is located at 2807 South State Street in St Joseph, Michigan. United Federal Credit Union has fifteen branch offices serving members throughout its service area. The credit union also offers online transaction service.

Member accounts are insured to at least $250,000 by the National Credit Union Share Insurance Fund, a federal insurance fund backed by the full faith and credit of the U.S. Government. This is the 7th federally insured credit union liquidation in 2009.

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The second credit union in less than a week was closed on August 31, 2009. The National Credit Union Administration (NCUA) was appointed liquidating agent of Kaiser Lakeside Credit Union of Oakland, California by the California Department of Financial Institutions.

For more information, please do not hesitate to visit the NCUA web site for Kaiser Lakeside.

Eastern Financial, started in 1937 by 10 employees of the former Eastern Airlines, remains open for business as usual, said Linda Charity, a spokeswoman for the state Office of Financial Regulation.

The National Credit Union Administration has appointed Space Coast Credit Union of Melbourne to temporarily manage Eastern Financial’s day-to-day operations.

Options for Eastern Financial include an acquisition or liquidation, said John McKechnie, a spokesman for the administration that monitors credit unions. “We have not made any decision,” he said.

All Florida credit union members benefit from National Credit Union Administration deposit insurance coverage at least up to $250,000 per institution.

Eastern Financial, like many financial institutions nationwide, has been hammered by loan losses related to the sluggish real estate and the securities markets.

Last week, federal banking regulators ordered Coral Gables-based BankUnited, the largest bank headquartered in Florida, to merge with another institution or find a buyer.

Eastern Financial ranks among the top 35 credit unions in the nation.

It has operated as a state-charted institution since November 2001 and has 30 offices, all in Florida. The credit union has $1.6 billion in total assets and more than 200,000 members.

“It was just poorly managed,” said Ken Thomas, an independent banking analyst in Miami. “It was run not like a credit union and not even like a conservative bank, but like a high-flying bank making a lot of questionable loans.”

Eastern Financial had moved into commercial real estate lending, a risky venture for credit unions, Thomas said.
“This is a good reason why credit unions should be carefully scrutinized before they get into nontraditional areas,” he said.

For more information, contact the NCUA at 1-678-443-3000 or visit the NCUA web site.

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U.S. Central Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were placed under conservatorship “to stabilize the corporate credit union system and resolve balance sheet issues,” according to the National Credit Union Administration.

U.S. Central Federal Credit Union has about $34B in assets, with 26 retail corporate credit union members. Credit union members will not experience any disruption in service and are free to make deposits and access funds.

As usual all depositors’ accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts. If you have questions about account insurance, you can go to the National Credit Union Association Insurance Fund website and learn more.

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U.S. Central Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were placed under conservatorship “to stabilize the corporate credit union system and resolve balance sheet issues,” according to the National Credit Union Administration.

Western Corporate, known as WesCorp, has an estimated $23B in assets. Credit union members will not experience any disruption in service and are free to make deposits and access funds.

As usual all depositors’ accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts. If you have questions about account insurance, you can go to the National Credit Union Association Insurance Fund website and learn more.

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“This credit union’s demise threatens consumers in the worst possible economic climate,” he said. “My office appreciates the excellent work done by banking department officials in ensuring that account holders and consumers are fully protected.”

West Hartford Credit Union wasn’t closed as a result of the economic downturn, rather because it lacked adequate capital and had significant loan losses because of poor administration and record-keeping according to State Banking Commissioner Howard Pitkin.

“It’s too bad. It was mismanagement, and now the credit union won’t be a source of credit for these people,” Pitkin said.

As usual all depositors accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts. NCUA said it  will issue checks to members holding verified share accounts in the credit union within one week.

Click here for the official NCUA press release.