Plan Proposes To Convert CUs To Commercial Banks And To Eliminate CU Tax Exemption (2)

Credit UnionThe robber is described as a 30- to 40-year-old black man, standing between 6-feet and 6-foot-4 and weighing between 220 and 250 pounds. Of the 28 credit unions agreeing to pay penalties for the fourth quarter, twenty-four had assets of less than $10 million; three had assets between $10 million and $50 million; and one credit union had assets of more than $250 million. Under the terms of the merger agreement, Achieva will purchase all of the issued and outstanding shares of Calusa Bank, making this the first whole bank” acquisition by a credit union, according to the negotiators. The 2013 Form 990s for some state-chartered credit unions are reporting that credit union officials (senior management and directors) are traveling first class.

The participating credit unions included Kellogg Community Federal Credit Union (Battle Creek, MI), Diversified Members Credit Union (Detroit, MI), Mountain River Credit Union (Salida, CO), CorePlus Federal Credit Union (Norwich, CT) and Ohio Catholic Federal Credit Union (Cleveland, OH). As of March 2015, the credit union was critically undercapitalized with a net worth ratio of minus 0.74 percent.Credit Union

Other credit unions that provided first class or charter travel to their officials in 2013 were TruMark Financial Credit Union (PA), Redwood Credit Union (CA), Veridian Credit Union (IA), Hapo Community Credit Union (WA), Washington State Employees Credit Union (WA) and Public Service Credit Union (CO). However, the Form 990 does not provide any information on how much these credit unions spent on first class travel. An e-mail inquiry to OnPoint Community CU regarding how much the credit union spent on first class travel went unanswered. The tax subsidy is not meant to be used to pay for first class travel by credit union officials.

Unfortunately, there is no data regarding federal credit unions extending this perk to credit union officials, as federal credit unions are not required to file Form 990s. Fibre Federal Credit Union of Longview, Washington, immediately assumed TLC Federal Credit Union’s members, shares, loans and certain other assets and liabilities. NCUA made the decision to liquidate TLC Federal Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own. TLC Federal Credit Union reported a loss of almost $3.7 million for all of 2014.

At the time of liquidation, TLC served 13,375 members and had assets of approximately $109 million, according to the credit union’s most recent Call Report. Also, NCUA placed New Bethel Federal Credit Union of Portsmouth, Virginia, into conservatorship due to safety and soundness issues. ABNB Federal Credit Union, of Chesapeake, Virginia, will operate New Bethel during the conservatorship under a management agreement with NCUA.

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