Jan. 31, 2012 – NCUA liquidated Eastern New York FCU of Napanoch, N.Y. on Jan. 27, while the FDIC announced four bank closures the same day.
Eastern New York FCU’s assets, loans and debts were immediately purchased by USAlliance FCU of Rye, N.Y. Eastern New York was the first liquidation of a federally insured credit union this year.
The accounts of the new USAlliance FCU members remain federally insured for up to $250,000 by the National Credit Union Share Insurance Fund, according to NCUA.
NCUA decided to liquidate Easter New York because the credit union was insolvent and had no prospects of restoring viable operations, the agency said. Chartered in 1961, the credit union served state and government industry employees located in nine counties of New York State. At the time of its liquidation, it had approximately 6,800 members and deposits of about $49 million.
The closure of four banks the FDIC announced Jan. 27 is expected to cost the Deposit Insurance Fund $607 million. The closed banks include:
- First Guaranty Bank and Trust Company of Jacksonville in Jacksonville, Fla., which had approximately $377.9 million in assets and is expected to cost the DIF $82.0 million;
- Tennessee Commerce Bank of Franklin, Tenn., which had $1.185 billion in assets and is expected to cost the DIF $416.8 million;
- Patriot Bank Minnesota of Forest Lake, Minnesota, which had had approximately $111.3 million in assets and is expected to cost the DIF $32.6 million.
- BankEast of Knoxville, Tenn., which had approximately $272.6 million in assets and is expected to cost the DIF $75.6 million.