Tiny Dallas Educators FCU Conserved

ALEXANDRIA, Va.-NCUA has placed Dallas Educators Federal Credit Union, with just 323 members, into conservatorship due to concerns over record-keeping and its overall financial condition. Dallas Educators Federal Credit Union members will experience seamless service during the conservatorship, which allows NCUA-selected management to correct service and operational weaknesses while continuing operations. Conservatorships are used to protect the assets of a troubled credit union with the goal of returning the institution to its members in strong financial condition. According to NCUA Region III Director Alonzo Swann, the $480,000 credit union is critically undercapitalized (less than 2%). The NCUA Board has named Swann conservator. Under federal law, NCUA is required to take “prompt corrective action” when a federal credit union’s net worth falls below certain capital levels. Dallas Educators Federal Credit Union was chartered in 1961 to serve the employees of the Dallas County Board of Education who work in Dallas County, Ala., and credit union employees and their immediate families. Member funds are safe and insured up to $100,000 by the National Credit Union Share Insurance Fund.