NCUA to distribute $76 million under Corporate System Resolution Program
ALEXANDRIA, VA (September 12, 2023) — The National Credit Union Administration, in its role as liquidating agent, announced a $76 million distribution to paid-in capital shareholders of the former U.S. Central corporate credit union.
“This distribution represents the latest example of the NCUA staff’s highly successful efforts to resolve the corporate crisis and return funds to capital holders,” Chairman Todd M. Harper said. “With this distribution, like the others before it, the NCUA encourages recipients to use these funds to increase access to safe, fair, and affordable financial products and services, especially in under-resourced communities. Credit unions can also use these funds to assist members experiencing economic hardship.”
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA has previously made six rounds of distributions. In 2020, 2021, 2022, and earlier in 2023, capital holders of Southwest, Members United, Constitution, and U.S. Central received distributions. This current distribution is scheduled to occur before the end of September 2023. With this seventh distribution, the NCUA will have returned $2.8 billion to former membership and paid-in capital shareholders and more than $360 million in dividends to shareholders.
The Corporate System Resolution Program is a landmark initiative established by the NCUA Board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. The 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.
Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims, as well as the process for determining the timing of distributions to member capital account holders, is available on the NCUA’s website.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
