NCUA Seeks Merger Mates ForHurricane-Battered CUs
ALEXANDRIA, Va. - (02/17/06) -- NCUA said Thursday it seeking toresolve as many as 10 credit unions in the Gulf area that have beenirreparably damaged by hurricanes Katrina and Rita. "Most of themare small," said Dennis Winans, head of the National CU ShareInsurance Fund, reporting to the NCUA Board. The largest one is a$13 million New Orleans credit union serving teachers. NCUA iscurrently searching for a merger-mate for that credit union andexpects the insurance fund to lose as much as $5 million on thatcredit union. NCUA expects to merge or close the 10 credit unionsat a cost of around $10 million, according to Winans. Separately,Winans reported that the 128 credit unions impacted by thehurricanes saw a massive inflow of shares due to insurance paymentsand disaster relief. Those credit unions reported a total influx of$809 million in the fourth quarter, bloating assets and shrinkingcapital ratios for the period.