NCUA headquarters. Credit/NCUA
The $46.6 million Unilever Federal Credit Union (UFCU) was liquidated because of insolvency and no prospect of restoring viable operations, the NCUA said Wednesday.
UFCU served 1,448 members and was chartered in 1948 to serve the financial needs of employees at Unilever, one of the world’s largest consumer goods companies that operates its North American headquarters in Englewood Cliffs, N.J.
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At the end of 2023, UFCU reported a loss of $134,891, followed by a larger loss of $336,490 in December 2024, according to NCUA financial performance reports.
Although the credit union’s asset quality had not deteriorated, its December 2024 Call Report revealed an inefficient cost structure, including $1,052,747 in non-interest expense and $111,089 in non-interest income. UFCU’s estimated operating efficiency ratio stood at 88%.
Employee compensation, which was $700,000 for five full-time staff members, accounted for 65% of total expenses. The credit union also spent $171,805 on professional and outside services. Salary and benefits per full-time employee averaged $140,000, nearly double the peer average of $73,008.
UFCU ended 2024 with a net worth ratio of 8.94%, compared to the peer average of 14.39%. Its return on average assets was -0.71%, compared to a peer average of 0.68%.
Total shares and deposits stood at $42.5 million, with total equity at $4.1 million in 2024, according to NCUA financial performance reports.
This marked the NCUA’s first credit union liquidation of 2025.
Peter Strozniak can be reached at [email protected].
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
