Faulty real estate loans and southern Wisconsin's high unemployment were key factors in the failure Wednesday of the $137 million First American CU and its subsequent FCU takeover, the state's top regulator said Thursday.

The Beloit Wisconsin CU was taken over after the failure by First Community FCU headquartered in Parchment, Mich.

Located on the border between Illinois and Wisconsin, First American had been on the NCUA and state watch list of troubled CUs for years "and that's obvious when you look at the call reports," said Sue Cowan, director of the Wisconsin Office of Credit Unions.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.