2,600 credit unions will receive payouts totaling $178 million as agency continues ‘corporate’ resolution

More than 2,600 credit unions will split $178 million in two payouts by their federal regulator, the legacy of actions to resolve the failures of “corporate” credit unions more than 10 years ago, the agency said Thursday.

The National Credit Union Administration (NCUA) said it would distribute $109.6 million to more than 100 membership and paid in capital shareholders of the former Constitution and U.S. Central corporate credit unions. (Corporate credit unions are a type of “credit union’s credit union” that provide liquidity and other services to member credit unions.) The agency said it will also distribute $68.6 million in dividends to more than 2,500 Members United and Southwest Corporate shareholders. The agency is taking the action in its role as liquidating agent of the corporates, which failed and were closed in the wake of the 2008 financial crisis.

The distribution is scheduled to occur before the end of this month, the NCUA said.

According to the agency, it has previously made five rounds of distributions. In 2020, 2021, and 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central, the NCUA said.

All told (including the latest distribution), the NCUA said it will have returned more than $2.7 billion to former membership and paid in capital shareholders and more than $360 million in dividends to shareholders.

NCUA to Distribute $178 Million Under Corporate System Resolution Program

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