Longtime county credit union liquidated
Promotional items for Trailblazer Federal Credit Union sit in boxes Tuesday, free for the taking, in front of the closed operation on East Wheeling Street in Washington.
A sign taped to the door advises that Trailblazer Federal Credit Union is no more.
A federal credit union that had served Washington County employees for nearly 60 years was liquidated Friday by the National Credit Union Administration, with its memberships and assets assumed by another local credit union.
The NCUA said in a news release Friday that it made the decision to liquidate Trailblazer FCU and discontinue its operations “after determining the credit union was insolvent and had no prospect for restoring viable operations.”
The NCUA said Trailblazer’s members and deposits were immediately assumed by Chrome Federal Credit Union, which has two offices in Washington County.
According to the website creditunionaccess.com, Trailblazer had three employees and operated at 70 E. Wheeling St., Washington. The NCUA said at the time of liquidation and prior to the assumption of its members and shares by Chrome FCU, Trailblazer served 1,535 members and had assets of $4.1 million.
The NCUA’s liquidation of Trailblazer took many county employees by surprise.
Washington County Director of Administration Scott Fergus said he first learned of the closure on Monday when he received a letter from the controller of the NCUA.
Fergus, who said he was surprised, added that the letter didn’t state specifically why the NCUA decided to close the credit union.
Washington County Deputy Controller Joshua Hatfield said the county had no oversight over the Trailblazer credit union.
“We are not connected with them legally and Trailblazer was not staffed by county employees,” he said Tuesday. “The people who worked there were employees of Trailblazer Federal Credit Union.” He said that the controller’s office learned of the situation from employees and pensioners who were calling about their accounts with the credit union.
Like Fergus, Hatfield said his office was taken by surprise at the abrupt closing.
“We only know what’s in the press release from NCUA,” Hatfield said. “We had no forewarning.”
Washington County elected officials’ payday is the 15th and 30th of most months, and Hatfield said the county had to perform a “mass switch” of bank routing numbers for officials and employees who had direct deposit of their paycheck with Trailblazer. Washington County employees’ next payday is Friday.
The NCUA’s release did not indicate whether any criminal wrongdoing was involved in its decision to close the credit union. The Washington County district attorney’s office and the Pittsburgh office of the FBI did not return calls from the Observer-Reporter seeking information.
NCUA spokesman John Fairbanks said in an email response to the O-R’s request for additional information on Monday that the administration doesn’t comment on its actions beyond what it states in its press releases.
The online publication Credit Union Journal said in a post that its review of the past four years of Trailblazer’s regular financial reports “did not reveal its pending demise, as its only reported annual loss was in 2013 and its net worth ratio remained in ‘well capitalized’ territory.
According to CUJ, in its March call report, Trailblazer listed $11,368 in net income for the first quarter, and its net worth ratio as of March 31 was 9.4 percent, indicating it was well capitalized. For 2014, the credit union reported $36,555 in net income and its net worth ratio as of Dec. 31 was 8.95 percent, also considered well capitalized.
The NCUA said its Asset Management and Assistance Center took charge of certain assets of the closed credit union, which was chartered in 1956, and served employees of Washington County and their immediate family members.
According to NCUA, accounts of the new Chrome FCU members remain insured by the National Credit Union Share Insurance Fund, which insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000.
NCUA said Trailblazer FCU was the fourth federally insured credit union liquidation this year.
Chrome FCU, formerly Washington Community Federal Credit Union, said Monday that it immediately assumed Trailblazer’s members and deposits.
Chrome President and Chief Executive Officer Christopher George said later Monday that when his credit union was asked by the NCUA just before it closed Trailblazer FCU if Chrome would assume the membership and assets, the agency didn’t say why it was closing it.
Chrome Vice President Amanda Lunger said the credit union offers digital services that Trailblazer members didn’t have in the past, such as online banking, mobile banking, bill pay and statements. She said members also have access to more than 40,000 surcharge-free ATMs and co-op shared branching, which allows Chrome transactions to be conducted at hundreds of credit unions nationwide. Prior to the assumption of Trailblazer’s members and assets, Chrome served 11,120 members and held $131.5 million in assets.
Chrome has two locations: 440 Racetrack Road (which is being remodeled and will reopen in September) and 45 Griffith Ave. in Washington. In the coming year it plans to expand its network and introduce innovative digital tools, including an updated website, a new mobile banking platform and a personal financial management tool.
A list of questions and answers for Trailblazer members has been posted to Chrome’s website at chromefcu.org and members are invited to visit Chrome at the Griffith Avenue location or call 724-228-2030 extension 896.
O-R staff writer Barbara Miller contributed to this story.