The National Credit Union Administration on Wednesday placed tiny Beverly Bus Garage Federal Credit Union, Chicago, Illinois, into conservatorship.
The federal credit union regulator said it placed Beverly Bus Garage FCU into conservatorship because of “unsafe and unsound practices at the credit union.”
“While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s operations,” the agency said in a statement.
This is the second conservatorship of a credit union in the past three weeks. On Feb. 23, the Michigan Department of Insurance and Financial Services placed $84 million Ukrainian Future Credit Union, Warren, Mich., into conservatorship and appointed NCUA as conservator.
Beverly Bus Garage Federal Credit Union is a federally insured credit union with 1,300 members and assets of $4,029,521, according to the credit union’s most recent call report. Beverly Bus Garage FCU was chartered in 1938. Today, it serves employees of the Chicago Transit Authority at the Beverly Bus Garage in Chicago, employees of the credit union, members of their immediate families and organizations of such persons.
NCUA said member deposits at Beverly Bus Garage Federal Credit Union remain protected by the National Credit Union Share Insurance Fund up to $250,000. The regulator added members should experience no interruption in services at the credit union’s office at 11049 S. Fairfield Avenue, Chicago, 60655.
“Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares,” NCUA said.
According to the credit union’s most recent call report, it had just $23,892 in net income in 2017. Its net worth ratio as of Dec. 31, 2017, was 41.92 percent (“well capitalized”).