EDINBURG, Texas—County and Municipal Employees CU here was liquidated on Friday by the Texas CU Department, with NCUA named as liquidating agent.
The credit union had $40 million in assets and more than 7,000 members, with more than $26 million in loans on the books, more than $21 million of which was concentrated in auto lending.
But County & Municipal’s September 2014 call report already showed a loss of more than $3.4 million this year, and that loss followed on the heels of a loss of more than $600,000 in 2013.
This is the ninth federally insured CU liquidation of 2014.
Year-to-date County and Municipal Employees had more than $5.5 million in delinquencies, along with another $2.2 million in charge-offs, and a net worth of only $343,778. It was listed as “Minimally Capitalized,” with a net worth ratio of 0.85%.
According to a statement from NCUA, the Texas CU Department made the decision to liquidate the CU and discontinue operations after determining that County & Municipal was insolvent with no prospect of restoring viable operations on its own.
Members, assets, shares and selected loans were assumed by $2.1 billion Navy Army Community CU of Corpus Christi, with NCUA guaranteeing accounts, interest, and IRA and KEOGH retirement accounts up to $250,000.
County & Municipal employees CU was chartered in 1956 and served employees in multiple political divisions and public service unites, as well as people who lived, worked and worshipped in Hidalgo County, Texas.