NCUA has liquidated the $137 million First American Credit Union of Beloit, Wisconsin.
The $474 million First Community Federal Credit Union of Parchment, Michigan has agreed to assume the First American's assets and liabilities, the NCUA announced.
The agency cited a "declining financial condition" that led to the First American closure. NCUA's records showed the credit union's net worth ratio had dropped from 6.09% in June 2009 to 3.87% in June 2010. The credit union had negative income of more than $4.5 million in 2009 and was on track to wind up with another $2 million in negative income this year, according to the agency's records.
First American is the 15th credit union NCUA has closed in 2010.