The $80 million Shreveport Federal Credit Union, a member of the National Federation of Community Development Credit Unions, is apparently close to winning NCUA approval to take over a failed Mississippi CU, the $5 million First Delta FCU of Marks.
First Delta, which ran into loan losses and an over extended branch system, has been in conservatorship since Oct. 23, 2009.
"The conservatorship board and management have worked for several months to restore First Delta FCU to financial stability and now feel confident the members can be assured of on-going services by this action," said Clifford Rosenthal, president/CEO of the National Federation, which over the years has assisted First Delta.
First Delta's management, said Rosenthal, had "worked diligently through the years to bring homeownership initiatives, small business services and other lifeline financial services to the Delta region of Northern Mississippi." Helen Godfrey-Smith, president/CEO of Shreveport FCU, said since the conservatorship began, she was called in by the NCUA to manage the Mississippi CU and so now feels the merger "represents a good fit, with it giving us three more offices."
Two of First Delta's former offices have been closed. Godfrey-Smith noted the difficulties "this $5 million credit union had in trying to operate four offices with eight or nine people and each with separate computer systems."
"While we regret the loss of the First Delta FCU's independent status, we are truly delighted that services will be preserved and even expanded by Shreveport FCU," Rosenthal concluded.
Godfrey-Smith said the merger should be viewed "as a business partnership with phenomenal possibilities for everyone concerned. While the decision to merge was precipitated by First Delta's very unfortunate circumstances, we believe this action to preserve credit union services to the Tri-Delta counties will be seen as one of the great decisions of this era."