2012-2024 List Of Failed Credit Unions | Bankrate (2024)

FAQs

Which credit unions have failed? ›

There has only been one bank failure so far in 2024. Republic First Bank (Philadelphia), which did business as Republic Bank, failed April 26. That was the first Federal Deposit Insurance Corp. (FDIC) bank to fail since Citizens Bank of Sac City, Iowa failed in November 2023.

A most reassuring fact is that "no one has ever lost a single penny of insured share deposits within the credit union system," Todd Harper, the National Credit Union Administration (NCUA) Chairman, announced in a recently released statement.

Dec. 31, 2008 – Nineteen consumer-owned credit unions fail in 2008, resulting in a loss of $232 million to the National Credit Union Share Insurance Fund.

The banks of greatest concern are Flagstar Bank and Zion Bancorporation, according to the screener. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion. The bank, however, only had $9.3 billion in total equity, making its total CRE exposure 553% of its total equity.

One question that often arises is, "Are Credit Unions Safer than Banks?" If you're looking for a short answer, you'll be happy to know that we're not making you read the whole post: Credit Unions and banks are roughly identical in safety because deposits at both are insured by the Federal government to $250,000.

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

Causes of credit union failures

Credit unions do fail from time to time, too, and have seen a few more failures in recent years than banks.

Should I worry about my money in a credit union? ›

Which is Safer, a Bank or a Credit Union? As long as you are banking at a federally insured institution, whether it is a credit union insured by the NCUA or a bank by the FDIC, your money is equally safe. Credit unions are owned by the members—your savings account at a credit union is a share of ownership.

A deposit was credited to my account by mistake. Can the credit union freeze the account? Yes.

FDIC. Both the NCUA and FDIC are responsible for insuring funds in the event that a financial institution fails. The NCUA insures credit union accounts, while the FDIC provides insurance for bank accounts.

1. Navy Federal Credit Union. Founded in 1933, Navy Federal Credit Union is the largest national credit union in terms of both assets and membership.

As banks get bigger and flex their marketing budgets, credit unions are a harder sell, even in the community where St. Mary's, the oldest credit union in the U.S., started long enough ago that the term "credit union" wasn't yet in use.

Experts told us that credit unions do fail, like banks (which are also generally safe), but rarely. And deposits up to $250,000 at federally insured credit unions are guaranteed, just as they are at banks.

No. Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union.

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.

The number of credit unions in the United States decreased notably between 2013 and 2023. At the end of 2023, there were 4,604 federally insured credit unions in the U.S., which was a significant drop compared to the previous years.