Bad loans and a sharp drop in net capital to negative 4% figured in the failure last week of the privately insured, $38 million USA One Credit Union in Matteson, Ill., it was reported Monday.
The $681 million Credit Union 1 of Rantoul, Ill., took over USA One in a purchase-assumption deal arranged through American Share Insurance Inc., the private carrier named as liquidating agent by the state regulatory agency.
"At one point USA One did have 10% net worth but over the last three to five months they have had consumer loan issues and found it difficult to recover," said Dennis Adams, president/CEO of ASI in the Columbus, Ohio, suburb of Dublin.
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