State closes 89-year-old NJ credit union, 2nd liquidation of year

A nearly $86 million-in-assets New Jersey credit union was liquidated by state banking authorities Wednesday, as the federal insurer of credit union savings was appointed the liquidating agent. The credit union had been in operation for 89 years.

First Jersey Credit Union of Wayne, N.J., with more than 9,000 members, was liquidated by the New Jersey Department of Banking and Insurance after the state agency determined the credit union was insolvent with no prospect for restoring viable operations on its own.

The National Credit Union Administration (NCUA) , which administers the National Credit Union Share Insurance Fund (NCUSIF), noted in a release that First Jersey is the second federally insured credit union liquidation in 2018.

Also according to NCUA, most of the credit union’s assets and loans, and all of the members’ shares, have been assumed by USALLIANCE Federal Credit Union, a $1.4 billion institution, with more than 100,000 members, in Rye, N.Y.

NCUA also pointed out that First Jersey, chartered in 1929, provided financial services to members in Bergen and Passaic Counties and the underserved areas of Essex, Hudson, and Union Counties in New Jersey.

First Jersey Credit Union Closes; USALLIANCE Assumes Shares and Loans