NCUA to Distribute $395 Million Under Corporate System Resolution Program
The National Credit Union Administration, in its role as liquidating agent, announced a $313 million distribution to more than 400 membership and paid in capital shareholders of the former Members United, Constitution, and U.S. Central corporate credit unions. NCUA will also distribute $82 million in dividends to more than 1,100 shareholders of Southwest Corporate. NCUA completed capital distributions to Southwest Corporate capital holders last year.
“The NCUA has reached another milestone in winding down the remaining asset management estates under the successful Corporate System Resolution Program,” Chairman Todd M. Harper said. “Thanks to the diligent efforts of the NCUA team over more than a decade, we continue to fulfill our fiduciary responsibility to return these funds to capital holders. As a result, the federally insured credit unions receiving these distributions will have the capacity to lend more and better offer safe, fair, and affordable financial products. That is good for credit union members and for our economy.”
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA has previously made four rounds of distributions. In 2020, 2021, and the first quarter of 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central. The distribution announced today is scheduled to occur before the end of September 2022. With this fifth distribution, the NCUA will have returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 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 and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.