NCUA, 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 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.
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 Corporate System Resolution Program is an 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.