SOUTH BEND, Ind. — Teachers Credit Union, based here, has completed the purchase and assumption of Lakeside FCU of Hammond, Ind., NCUA announced Friday.
NCUA liquidated Lakeside FCU late Thursday afternoon. The regulator said it made the decision to liquidate the former $8.9 million CU and discontinue its operations after determining Lakeside was "insolvent and had no prospect for restoring viable operations."
Teachers, a $2.6 billion CU, purchased Lakeside's loan portfolio and assumed its former members.
Originally chartered in 1931, Teachers CU had 269,362 members prior to the P&A. Teachers serves people who live in Indiana and in Michigan's Cass and Berrien counties.
After two quiet months, the shuttering of Lakeside FCU marked the second consecutive week NCUA liquidated a credit union. On July 10,
Trailblazer FCU was the fourth, and Lakeside FCU was the fifth federally insured credit union liquidation in 2015.
Lakeside Federal Credit Union served 2,280 members, according to the credit union's most recent Call Report.
Big Losses 2009 through 2011
A review of Lakeside FCU's financials showed losses of $362,318 from 2009 through 2011, followed by smaller losses in 2012 and 2013. The CU rebounded to post a small profit in 2014, and had reported positive income for the first quarter of this year. Its net worth ratio remained firmly in "well capitalized" territory from 2009 to present.
- In its March 2015 Call Report, Lakeside FCU had $9,799 in net income for Q1. Its net worth ratio as of March 31 was 9.21% ("well capitalized").
- In 2014, Lakeside FCU reported $27,587 in net income. Its net worth ratio as of Dec. 31, 2014 was 9.17% ("well capitalized").
- In 2013, Lakeside FCU had a loss of $40,092 from operations. It paid $6,950 in NCUSIF Premium Expense, bringing its total net loss for the year to $47,042. Its net worth ratio as of Dec. 31, 2013 was 8.64% ("well capitalized").
- In 2012, Lakeside FCU lost $18,399 from operations and paid a Temporary Corporate CU Stabilization Fund Assessment of $8,618, making its total net loss for the year $27,017. Its net worth ratio as of Dec. 31, 2012 was 8.98% ("well capitalized").
- In 2011, Lakeside FCU lost $47,991 from operations and paid a Temporary Corporate CU Stabilization Fund Assessment of $22,911, bringing its total net loss for the year to $70,902. Its net worth ratio as of Dec. 31, 2011 was 8.73% ("well capitalized").
- In 2010, Lakeside FCU lost $56,201 from operations. It paid assessments to both the NCUSIF ($22,319) and the TCCUSF ($27,904). The two assessments made its total net loss for the year $106,424. Its net worth ratio as of Dec. 31, 2010 was 9.36% ("well capitalized").
- In 2009, Lakeside FCU lost $184,992. Its net worth ratio as of Dec. 31, 2009 was 10.86% ("well capitalized").
Chartered in 1950, Lakeside Federal Credit Union served members, employees and their families of the Trans Union Corporation in Lincolnshire and Chicago, as well as members, employees and their families of Union Tank Car Company, Trans Union Systems Corporation and several smaller employers in northwest Indiana.
