NCUA, in its role as liquidation agent, announced a distribution of $313 million to more than 400 members and paid equity shareholders from former members United, Constitution and US Central corporate credit unions. NCUA will also distribute $82 million in dividends to more than 1,100 Southwest Corporate shareholders. NCUA completed capital distributions to Southwest Corporate equity holders last year.
The distribution announced today is expected to take place before the end of September 2022. With this fifth distribution, the NCUA will have returned more than $2.6 billion to former members and shareholders in paid-in capital and nearly $292 million in dividends to shareholders.
As liquidating agent for the asset management assets of the former corporate credit unions, the NCUA has already made four rounds of distributions. In 2020, 2021 and the first quarter of 2022, distributions were made to equity holders of Southwest, Members United, Constitution and US Central.
The Corporate System Resolution Program is an initiative established by the NCUA Board of Directors to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. program has allowed the credit union system to absorb the failures of corporate credit unions in the central, western, southwestern, united members, and constitution over time.
Information about the corporate system resolution program, including projections for corporate asset management recoveries and claims and the process for determining when distributions are made to members’ capital account holders, can be found on the NCUA website.