Tiny Philadelphia FCU Placed into Conservatorship
ALEXANDRIA, Va. -- Last week, NCUA determined it necessary to place Mt. Hebron Baptist Federal Credit Union into conservatorship to bring it back to a safe and sound operating status.
The agency conserved the $30,906-asset credit union and is continuing service uninterrupted to its 104 members. Conservatorship of a credit union helps continue normal operations while putting expert management in place.
While the credit union reported 54% net worth at the end of March, its delinquency ratio was over 87%. Return on assets was negative 15%, according to NCUA Call Report data.
NCUA Regional Director Edward P. Dupcak executed the conservatorship order on behalf of the NCUA Board. The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union and protect members' interests.
The agency assured that member accounts are insured by the NCUSIF up to $100,000 while certain retirement accounts are covered up to $250,000.