New York DFS Places Yonkers Postal Employees Credit Union Into Conservatorship

National Credit Union Administration

The Yonkers Postal Employees Credit Union (Yonkers CU) has been placed into conservatorship by the New York State Department of Financial Services (DFS), with the National Credit Union Administration (NCUA) appointed as conservator.

The move was made to protect Yonkers CU members, and normal member services will continue with the NCUA overseeing the Yonkers, New York-based credit union’s operations, the DFS said in a Friday (July 28) press release.

“In several examinations conducted jointly by the NCUA and DFS, the institution has been rated critically deficient,” the DFS said in the release. “The management of Yonkers CU has continually failed to comply with orders issued by the NCUA and DFS to remediate outstanding issues and has created roadblocks for potential mergers with other credit unions that would have benefited the members of Yonkers CU.”

Yonkers CU is a state-chartered credit union, had deposits of about $5.25 million as of Dec. 31, 2022, and serves 486 U.S. postal employees and retirees, according to the release.

The NCUA said in a Nov. 30, 2022, press release that it had issued a cease and desist order to Yonkers CU during that month and that the credit union had agreed and consented to the issuance of the order to “address certain supervisory concerns raised by the NCUA’s Eastern Regional Office.”

“Generally, the NCUA issues administrative orders when it finds that a credit union or persons affiliated with a credit union have violated a law, rule or regulation; breached a fiduciary duty; or engaged in an unsafe or unsound practices,” the NCUA said in the November press release.

Member deposits at Yonkers CU are protected by the National Credit Union Share Insurance Fund, which is administered by the NCUA and insures individual accounts up to $250,000 and a member’s interest in all joint accounts combined up to $250,000, the NCUA said in a Friday press release. The Fund also separately protects IRA and KEOGH retirement accounts up to $250,000.

“Members can continue to conduct financial transactions, deposit and access funds, make loan payments and use shares during the conservatorship,” the NCUA said in the release.