Florida CU Failure Merged Out

MIAMI – State regulators have approved an emergency merger of troubled Mount Sinai FCU into neighboring People CU.

The emergency merger was approved on Aug. 26 by the Florida Office of Financial Regulation without a shareholder vote from the members of Mount Sinai Federal Credit Union because regulators considered it critically undercapitalized and a "failing financial entity."

Mount Sinai, which serves doctors and staff at the Mount Sinai Medical Center, is a one-time $22 million credit union whose assets had dwindled to less than $18 million, and net worth to just 1.4% at mid-year. It had a delinquency ratio of 4.58%.

Peoples CU, chartered in 1946, has assets of almost $62 million and had more than 12% net worth at mid-year.

It is the second credit union failure on Florida so far this year, following that of Eastern Financial Florida CU, the one-time $2.4 billion credit union.