HENDERSON, Nev. – NCUA took over failed Ensign FCU Friday night and assigned the remnants of the one-time $135 million credit union to EDS CU of Plano, Texas.
Ensign, the fourth large credit union failure in Nevada in the past six weeks, reported a $10 million loss for the first nine months of the year and had negative net worth by the time of the NCUA takeover.
The Ensign takeover follows recent failures of Community One FCU and Cumorah CU, both in Las Vegas, and Clearstar Financial CU, in Reno. All three credit unions, once over $100 million each, were acquired by large out-of-state credit unions.
By the time NCUA liquidated Ensign and assigned its accounts to EDS CU, the troubled credit union’s assets had dwindled to just $98 million.
It is the second deal for a troubled credit union in recent months for EDS CU, a $770 million credit union in the process of changing its name to InTouch CU. EDS recently acquired First America FCU, a troubled $28 million credit union in Santa Ana, Calif.
Ensign is the 25th credit union failure so far this year.
