A $76 million distribution to credit unions that were paid-in capital shareholders of the former U.S. Central Corporate Federal Credit Union is scheduled to be completed before the end of this month, the National Credit Union Administration (NCUA) said Monday.
This would be the seventh round of distributions to capital holders of four out of the five corporate credit unions that failed amid the 2008 financial crisis. The NCUA said that with this month’s distribution, the agency, as liquidating agent of these failed institutions, will have returned $2.8 billion to former membership and paid-in capital shareholders; and more than $360 million in dividends to shareholders.
The six previous distributions were made in 2020, 2021, 2022, and earlier this year, the agency said, to capital holders of Southwest, Members United, Constitution, and U.S. Central. No distributions were made to capital holders of Western Corporate (WesCorp).
These distributions and other operations for managing these institutions’ losses have been handled through the agency’s Corporate System Resolution Program, which was created to stabilize, resolve, and reform the credit union system in the wake of the financial crisis. The agency notes this program allowed the credit union system to absorb the failures of U.S. Central, Western, Southwest, Members United, and Constitution corporate credit unions over time.