NEW HAVEN, Ind. – East Allen FCU is closing its Leo branch Aug. 20, due to a lack of funds, partially attributed to NCUA’s corporate assessments, it told members last week.
“This perfect storm” of increased regulations and the bad economy means East Allen Federal Credit Union can’t continue to support two branches, the flier said. It has no more room in its already “lean” budget, so a tough decision had to be made, the $13 million credit union told members.
East Allen, which is well capitalized at 9% net worth and had a slim first half net of $10,000, will provide services at its other office in New Haven to members affected by the closing, including a night drop box for deposits and Saturday morning hours.
The credit union asked members to consider helping the credit union, including taking out loans.
“If we could increase our total loans by $1 million to $2 million and be able to sustain that loan growth, that would have an immediate and positive effect for our credit union,” it told members.
