A tiny Southern Tier credit union, whose primary sponsor company shuttered its plant this year, has been seized and liquidated by federal regulators because it was "insolvent and had no prospect for restoring viable operations," the National Credit Union Administration said.
In the 13th credit union failure this year, the NCUA closed Olean Tile Employees Federal Credit Union in Olean, which served 550 members and had $778,139 in total assets. The agency worked to quickly reassure customers that their money is protected.
Just as with banks, member deposits at credit unions are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA's Asset Management and Assistance Center will mail information to customers holding verified accounts within one week.
Members with additional questions can contact the agency's Consumer Assistance Center at (800)755-1030 or go online to mycreditunion.gov for more information about their insurance coverage.
Chartered in 1936, the credit union had served employees of the Olean Tile Co., now Dal-Tile, for 76 years. But Dallas-based Dal-Tile, the largest U.S. maker of ceramic tile and producer of natural stone, announced in October that it would close the Olean plant and lay off 174 workers because of the sluggish economy and weak sales. The unionized facility will be shuttered by the end of January, with work consolidated to a plant in Gettysburg, Pa.