First Jersey Credit Union Closes; USALLIANCE Assumes Shares and Loans

ALEXANDRIA, Va. – Members of First Jersey Credit Union are now members of USALLIANCE Federal Credit Union following a liquidation this week by the New Jersey Department of Banking and Insurance.

The Department liquidated First Jersey, of Wayne, New Jersey, and appointed the National Credit Union Administration (NCUA) as liquidating agent. USALLIANCE Federal Credit Union of Rye, New York, immediately assumed most of First Jersey’s assets and loans and all member shares.

The new USALLIANCE Federal Credit Union members should experience no interruption in services, according to NCUA.

USALLIANCE Federal Credit Union is a federally chartered credit union that serves 101,717 members and has assets of nearly $1.4 billion, according to the credit union’s most recent Call Report.

The New Jersey Department of Banking and Insurance made the decision to liquidate First Jersey Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own. First Jersey Credit Union is the second federally insured credit union liquidation in 2018.

At the time of liquidation and subsequent purchase and assumption by USALLIANCE Federal Credit Union, First Jersey Credit Union served 9,045 members and had assets of almost $86 million, according to the credit union’s most recent Call Report. Chartered in 1929, First Jersey Credit Union provided financial services to members in Bergen and Passaic Counties and the underserved areas of Essex, Hudson, and Union Counties in New Jersey.