NAPANOCH, N.Y. — NCUA liquidated Eastern New York FCU Friday night and assigned the remnants of the one-time $60 million credit union to USAlliance FCU, the $760 million credit union based in the Manhattan suburb of Rye, N.Y.
It is the first credit union failure of the year. There were 15 credit union failures in 2011.
Eastern New York FCU, which reported losses in each of the past three fiscal years and had net worth of less than 1% at year-end, was chartered in 1961 and served state and government industry employees in nine counties of New York State.
NCUA said it made the decision to liquidate the now-$49 million credit union and discontinue its operations after determining the credit union was insolvent and has no prospect for restoring viable operations on its own.
