FORT COLLINS, Colo. - Members continued to withdraw their funds from Norlarco CU at alarming rates last month, according to notices posted this week at the credit union's branches.
The troubled credit union, which holds hundreds of millions of dollars in failed real estate loans in southwest Florida's Cape Coral and Lehigh Acres developments, reported it lost another $20 million in deposits in September, following $32 million of withdrawals in August-soon after NCUA takeover of the credit union was made public.
State regulators had taken the credit union under conservatorship last May, but kept it secret until July 24, when NCUA confirmed the government takeover. Since then, the credit union has lost more than 17% of its deposits, and was down to $249 million in deposits as of Sept. 30.
