ALEXANDRIA, Va. — NCUA announced the first liquidation of 2014 as it shuttered tiny Bagumbayan Credit Union of Chicago.
In a statement released Tuesday evening, the agency said that $626 million-asset Great Lakes Credit Union of North Chicago, Ill., will immediately assume Bagumbayan's members and deposits.
Great Lakes CU is a federally insured, state-chartered credit union that serves more than 54,000 members. GLCU has been operating Bagumbayan under a management agreement with NCUA since Bagumbayan was placed into
NCUA said, with approval from the Illinois Department of Financial and Professional Regulation, it made the decision to liquidate Bagumbayan CU and discontinue its operations to protect the institution from continued financial deterioration.
At the time of liquidation and subsequent purchase and assumption by Great Lakes Credit Union, Bagumbayan Credit Union served just 44 members and had assets of $55,140, according to its most recent call report.
Chartered in 1964, Bagumbayan Credit Union provided limited financial services to members of the Bagumbayan community in Chicago, who are followers of a political party in the Philippines
Assets fell almost 33% to $55,140 in September 2013, down from $81,858 in September 2012.
The credit union had a net worth ratio of 6.97% ('adequately capitalized&') and just under the prompt corrective action trigger of falling below 7%, according to its September 2013 call report.
Bagumbayan reported an $8,267 loss in the third quarter last year, following losses of $3,480 in the second quarter, $1,355 in Q1, $8,053 as of the end of 2012 and $7,522 in the third quarter of 2012.
