St. Paul Croatian Credit Union in Cleveland taken over by NCUA. The takeover on April 23rd came a week after the Securities and Exchange Commission filed a lawsuit. The deposits are safe, but withdrawals are limited to $5,000 per member per week.
NCUA spokesman John McKechnie said the SEC case had nothing to do with the credit union takeover. He stated the credit union experienced rapid deterioration in its financial condition over the last quarter. The credit union has 5,400 members and total assets of nearly $251 million.
NCUA liquidates Tracy Federal Credit Union in Tracy, CA. Valley First Credit Union steps in to purchase and assume assets.Tracy had $25.4 million in assets and served 5,973 members.
Tracy FCU saw its liabilities increase 27.2% , a 89.6% decline in its net income, and an increase to 3.85% delinquency ratio in the last quarter of 2009. The downfall of Tracy was the consistent quarterly negative Return on Assets that led to the liquidation.
This marks the sixth credit union to implode in 2010, and the third in California.