Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Milwaukee CUs face merger pressures
MILWAUKEE (6/22/09)--Two suburban Milwaukee credit unions are dealing with regulatory requirements to address undercapitalization. One option is for the two credit unions to merge into healthier credit unions. The National Credit Union Administration (NCUA) and the Wisconsin Office of Credit Unions are working with Allco CU, West Allis, Wis., and First Security CU, Elm Grove, Wis., to fix their capital issues, said NCUA (The Business Journal of Milwaukee June 18). “Both institutions are undercapitalized per their 5300 call reports and are thus subject to net worth restoration plan requirements,” John McKechnie, NCUA director of public and congressional affairs, told News Now. “NCUA is not going to comment on the merger process regarding the names or the number of bidders. “We are saying that a merger is one of the possibilities being considered,” he added. “That’s per our regulations.” The $49.4 million asset Allco’s net worth ratio was 2.7% at the end of the first quarter, and the $35.4 million asset Security’s net worth was 0.29%. NCUA says 6% is an adequate capitalization level, the Journal said. Allco posted a first-quarter net loss of $146,915, and listed loan delinquencies of $5.4 million for the first quarter--a 16.4% increase from the previous quarter. First Security said it had a net loss of roughly $2.3 million for the quarter---mostly for loan loss provision, the Journal said. In a separate matter, Lifetime CU, a $32.4 million asset, West Allis-based credit union-- which posted a first-quarter net loss of about $2.2 million--is slated to merge into $1.282 billion asset, New Berlin, Wis.-based Landmark CU by June 30, the Journal reported.


RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
1 day ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
1 day ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
1 day ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
1 day ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
1 day ago