More Than Two-Dozen More

OK'd For Low-Income Status

ALEXANDRIA, Va.-NCUA has approved more than two dozen additional credit unions for low-income status, making 811 credit unions that qualified in 2012 for the designation, which exempts credit unions from the member business loan cap and allows them to accept non-member deposits and to raise supplementary capital. Among those approved on the final days of the year are some of the nation's biggest credit unions, including billion-dollar credit unions Jeanne D'Arc CU in Massachusetts, Max FCU in Alabama, Florida Commerce FCU, and Goldenwest FCU in Utah. NCUA has designated a total of 1,912 credit unions as low-income.

More CUs Announce Special

Year-End Bonus Dividends

DENTON, Texas-A number of credit unions last week announced bonus dividends, including DATCU CU here, which is paying $974,762.78 back to members. The dividend of 0.20% was paid based upon a member's annual average of all balances. In Antigo, Wis., CoVantage CU is paying $1.5 million in patronage dividends via a savings bonus and a loan interest rebate. And in Texas City, Texas, AMOCO FCU is paying $1 million in bonus dividends and loan interst refunds, the 17th straight such bonus paid.

In Unique Deal, Chetco Is

Sold To Rogue, Coast Central

HARBOR, Ore.-NCUA liquidated Chetco FCU and assigned the remnants of the one-time $375-million credit union, 2012's 21st failure, to two west coast credit unions in an unprecedented purchase-and-assumption agreement. Under the deal, Oregon's Rogue FCU has assumed Chetco's five Oregon branches and memberships, and California's Coast Central CU has purchased the Crescent City branch and California memberships. Chetco had reported losses of $17 million for 2010, $35 million for 2011 and $525,000 for the first three quarters of 2012.

More Mergers Are Approved

ALEXANDRIA, Va.-NCUA last week approved mergers of several more troubled credit unions, including : $11-million AgFirst FCU, Columbia, S.C., into Carolina Collegiate FCU; $77-million Safeway Los Angeles FCU into Xceed Financial FCU, El Segundo, Calif.; $20-million Washington Postal EFCU, into FedChoice FCU, Lanham, Md.; the one-time $90-million State Center CU into Valley First CU, Modesto, Calif.; one-time $43-million Forth Worth Telco into EECU, Fort Worth; $15-million Appalachian FCU into Appalachian Community FCU, Kingsport, Tenn; $10-million Theo Davies FCU into Hawaii Central FCU, and $14-million Coos Educators' FCU into Northwest Community CU, Oregon.

Halter Named Interim CEO At DCCU

ATLANTA-Delta Community CU has named Hank Halter, a current credit union director and former CFO at its main sponsor, Delta Air Lines, as interim CEO of the $4.3-billion CU while it searches for a permanent successor to Rick Foley. Halter worked at Delta Air Lines from 1998 to 2012, the last four as CFO, and worked at American Airlines and Ernst & Young before that. Foley retired Dec. 31, after 26 years with the one-time airline employees' credit union, the past eight as CEO.

HarborOne Sets Conversion Meeting

BROCKTON, Mass.-HarborOne Credit Union here has scheduled a special meeting for members for March 11 to discuss its proposal to convert to a bank. The meeting will be held at The Shaw's Center and be open to members who are 18 years of age an older and who have had an account with the credit union for at least three months. For state-chartered CUs, a conversion to a bank requires a simple majority of members who vote, not a majority of the credit union's 15,000 members. Ballots are to be sent to members in the coming months. Among other things, the credit union has said it needs to convert to a bank charter in order to expand its service area; it has not said why it does not simply seek to expand its field of membership.

Ex-CEO To Be Sentenced This Week

DALLAS-The former president and sole employee at Women's Southwest FCU, which was shuttered by NCUA in October, pled guilty last week to stealing $3.4 million from the credit union over 11 years.Theresa Portillo, 34, confessed to converting 18 credit union-owned CDs and using the proceeds to buy cars, jewelry, vacations, to pay medical bills and to buy nine Dallas-area homes. She is scheduled to be sentenced this week.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.