Wisconsin’s First American CU Fails

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BELOIT, Wis. – NCUA said First American CU, a one-time $160 million credit union here, was liquidated today, the 24th credit union failure of the year.

As liquidating agent, NCUA immediately signed an agreement with First Community FCU in Parchment, Mich., to assume the assets and liabilities of First American. First Community is a $475 million credit union serving residents in nine local counties.

First American, a community charter, reported net worth of 3.8% at mid-year and lost $1.2 million for the first six months of the year. It reported a $5.6 million loss for 2009. More than 13% of its loans were delinquent at mid-year, compared with the average of 1.6% among peer credit unions.

First American was formed in 1933 by a group of Beloit Iron Works employees. It had assets of $136.9 million and about 17,450 members when it was closed Tuesday. It had four branches - two in Beloit and one each in Janesville and Rockton, Ill.

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