FORT COLLINS, Colo.—The troubled Norlarco Credit Union says it lost $20 million in deposits and nearly 900 members in September.
Norlarco, which was placed under federal control five months ago, reported the losses Tuesday.
CEO Bob Hamer said it was difficult to determine how many members left because of publicity about the credit union’s problems and how many were inactive accounts purged from the books.
He declined further comment on the losses or the lawsuits facing the credit union.
Norlarco was put under federal control in May because of a rising number of delinquencies in construction loans it had made in Lee County, Fla.
Norlarco has about 1,000 construction loans totaling more than $238 million in Florida, according to federal regulators. Some of that risk is shared by other credit unions, but the exact amount was not available.
Norlarco is facing lawsuits filed by homebuyers, a Wisconsin credit union that participated in some of the Florida deals and a real estate investor.
———
Information from: Fort Collins Coloradoan,
