Wednesday, June 28, 2017

LOMTO Federal Credit Union in Woodside, New York Fails

Credit Union Failures 2017 continue with the National Credit Union Association seizing LOMTO Federal Credit Union in Woodside, New York on Monday, June 26, 2017. This is the eighth credit union failure of the year. Credit unions have now failed in Alabama, Florida, Georgia, Louisiana, Michigan, New York 2, and North Dakota.

The NCUA stated, "NCUA placed LOMTO Federal Credit Union into conservatorship because of unsafe and unsound practices at the credit union. During the conservatorship, NCUA will work to resolve issues affecting the institution’s safety and soundness while maintaining normal member services."

#8 LOMTO Federal Credit Union in Woodside, New York
* National Credit Union Association placed the credit union into conservatorship.
* Operations will continue under NCUA supervision.
* As of the most recent call report, Citizens Community Credit Union had approximately $236.5 million in total assets and 2,958 members.

Failed Credit Unions

The NCUA has closed 2 credit unions in 2017:

Closed and Liquidated
2 Valley State Credit Union of Saginaw, Michigan, 3-31-17.
1 Florida Conference AME Church Federal Credit Union of Tallahassee, Florida, 3-17-17.

The NCUA has placed 6 credit unions in conservatorship in 2017:

Placed In Conservatorship
6 LOMTO Federal Credit Union, Woodside, New York, 6-26-17
5 Citizens Community Credit Union, Devils Lake, North Dakota, 6-23-17
4 Riverdale Credit Union, Selma, Alabama, 6-22-17
3 Community United Federal Credit Union, Waycross, Georgia,, 4-20-17
2 Shreveport Federal Credit Union, Shreveport, Louisiana, 4-13-17
1 Melrose Credit Union, Briarwood, New York, 2-10-17

NCUA Supervisory Actions

Seeking Alpha