New York Regulator Conserves Yonkers Postal Employees Credit Union
YPECU posts losses and its IRS tax-exempt status has been revoked since 2021.
The New York State Department of Financial Services placed the $6 million, 474-member Yonkers Postal Employees Credit Union into conservatorship and appointed the NCUA as conservator, the regulators announced Friday.
YPECU has posted losses annually from 2019 to 2021. In 2019, the credit union recorded a net loss of $280,363, $11,455 in 2020 and $32,504 in 2021, according to NCUA financial performance reports. In 2022, it had a net income of $27,531.
At the end of the first and second quarter of this year, however, YPECU posted net losses of $33,378 and $47,724, NCUA financial performance reports showed.
YPECU’s management ratios from 2018 to 2022 showed substantial declines in loans and membership. In 2020 and 2021, for example, the credit union saw loans fall by 12.85% and 20.28%, respectively, according to NCUA financial performance reports. In both 2019 and 2022, YPECU’s membership dropped by more than 6%.
What’s more, the credit union’s tax-exempt status was revoked on May 15, 2021, according to the IRS. The federal agency automatically revokes an organization’s tax-exempt status – including for state-chartered credit unions – when it fails to submit a Form 990 for three years in a row.
The last Form 990 submitted by YPECU was in 2017, IRS records showed.
Member services will continue uninterrupted at the credit union’s main office at 79-81 Main St., Rm 201, Yonkers, N.Y. Members can continue to conduct financial transactions, deposit and access funds, make loan payments and use shares during the conservatorship, the NCUA said in a prepared statement.
Member deposits at YPECU remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at the credit union up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000, according to the NCUA.
YPECU was chartered in 1933 and was the second credit union to be placed under the NCUA’s conservatorship this year.
In January, the $25.8 million Valwood Park Federal Credit Union in Carrollton, Texas was conserved for unsafe and unsound practices.