ALEXANDRIA, Va. -- NCUA took over $55 million assets Obelisk Federal Credit Union back in April and has now found a merger partner for it.
NCUA said the administrative maneuver was made for "service and operational weaknesses." The Obelisk's first quarter figures show that the credit union struggled with delinquencies, which grew 118% in the 6-12 month category. Credit cards 1-2 months delinquent were up 596.3% and return on assets was a negative 30.78%. Thus, Obelisk became undercapitalized at 1.41% net worth.
However, it was recently announced that the credit union would be merging with $649 million Centra Credit Union with 114,414 members, net worth of 11.51% and ROA of 0.94%. "Obelisk Federal Credit Union and Centra Credit Union are partnering to better serve all of our members in Southern Indiana. We're proud of this exciting news and we're sure you will be, too," it was announced on Obelisk's Web site (www.obeliskfcu.com).
Obelisk's three branches will become branches of Centra. Centra, an NCUSIF insured credit union, also provides members with $250,000 in excess deposit insurance through American Share Insurance's Excess Share Insurance.