HAMMOND, Ind. — NCUA liquidated Lakeside Federal Credit Union, based here, late Thursday afternoon.

The regulator said it made the decision to liquidate $8.9 million Lakeside FCU and discontinue its operations after determining the credit union was "insolvent and had no prospect for restoring viable operations."

After two quiet months, the shuttering of Lakeside FCU marked the second consecutive week NCUA liquidated a credit union. On July 10, NCUA shut down Trailblazer FCU of Washington, Pa.

Lakeside FCU is the fifth federally insured credit union liquidation in 2015.

NCUA said its Asset Management and Assistance Center will issue correspondence "in the near future" to individuals holding verified share accounts in Lakeside FCU.

Lakeside Federal Credit Union served 2,280 members, according to the credit union's most recent Call Report.

Big Losses 2009 Through 2011

A review of Lakeside FCU's financials showed losses of $362,318 from 2009 through 2011, followed by smaller losses in 2012 and 2013. The CU rebounded to post a small profit in 2014, and had reported positive income for the first quarter of this year. Its net worth ratio remained firmly in "well capitalized" territory from 2009 to present.

  • In its March 2015 Call Report, Lakeside FCU had $9,799 in net income for Q1. Its net worth ratio as of March 31 was 9.21.
  • In 2014, Lakeside FCU reported $27,587 in net income. Its net worth ratio as of Dec. 31, 2014 was 9.17%.
  • In 2013, Lakeside FCU had a loss of $40,092 from operations. It paid $6,950 in NCUSIF Premium Expense, bringing its total net loss for the year to $47,042. Its net worth ratio as of Dec. 31, 2013 was 8.64%.
  • In 2012, Lakeside FCU lost $18,399 from operations and paid a Temporary Corporate CU Stabilization Fund Assessment of $8,618, making its total net loss for the year $27,017. Its net worth ratio as of Dec. 31, 2012 was 8.98%.
  • In 2011, Lakeside FCU lost $47,991 from operations and paid a Temporary Corporate CU Stabilization Fund Assessment of $22,911, bringing its total net loss for the year to $70,902. Its net worth ratio as of Dec. 31, 2011 was 8.73%.
  • In 2010, Lakeside FCU lost $56,201 from operations. It paid assessments to both the NCUSIF ($22,319) and the TCCUSF ($27,904). The two assessments made its total net loss for the year $106,424. Its net worth ratio as of Dec. 31, 2010 was 9.36%.
  • In 2009, Lakeside FCU lost $184,992. Its net worth ratio as of Dec. 31, 2009 was 10.86%.

Chartered in 1950, Lakeside Federal Credit Union served members, employees and their families of the Trans Union Corporation in Lincolnshire and Chicago, as well as members, employees and their families of Union Tank Car Company, Trans Union Systems Corporation and several smaller employers in northwest Indiana.

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