Nearly $400 million will be distributed among 1,500 credit unions – with about 80% of the distribution going to about 400 of the institutions – by the end of next month, their federal regulator said Monday.
In a release, the National Credit Union Administration (NCUA) said the multi-million-dollar distribution is the result of its program to resolve four failed corporate credit unions (sorts of bankers’ banks for credit unions), which began more than a decade ago. More specifically, the agency said it is winding down the remaining asset management estates under the Corporate System Resolution Program. The NCUA acts as the liquidating agent for the institutions, which failed in the wake of the financial crisis of 2007-08.
According to the NCUA, $313 million of the distribution will be made to more than 400 credit unions and “paid in capital shareholders” of the former Members United, Constitution, and U.S. Central corporate credit unions. The remaining $82 million will be distributed as dividends to more than 1,100 shareholders of Southwest Corporate credit union.
NCUA said the latest distribution is scheduled to occur before the end of next month.
Monday’s announcement of a distribution was the fifth announced by the agency. The others were made 2020, 2021, and the first quarter of 2022, to capital holders of Southwest, Members United, Constitution, and U.S. Central.
The agency said that with the distribution announced Monday, it will have returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 million in dividends to shareholders.