Saying the financial institution is “insolvent and has no prospects for restoring viable operations,’’ the NCUA on Wednesday liquidated the Hmong American Federal Credit Union of St. Paul, Minn., the eighth liquidation of a federally insured credit union this year.
The NCUA had conserved the $2.7 million credit union on May 4 and moved its office into an office of $550 million Spire Credit Union about two miles away.
On May 6, the NCUA named consultant and former Minnesota Corporate FCU senior vice president Pamela Jorgenson as Hmong American’s interim CEO.
The agency didn’t disclose what caused the credit union’s difficulties and its financial reports indicated that it was in good condition.
Its assets increased 2.4% in March and 1.9% last December. The size of its loan portfolio fell 4.7% in March after increasing 17.7% in December.
Its delinquent loan ratio was .45% in March and .97% in December. Its net worth ratio was 15.98% in March and 15.73% in December. Its return on average assets ratio was 1.85% in March and 1.78% in December.
Deposits are insured up to $250,000 and the NCUA said it would issue checks to individuals holding verified share accounts within one week.
Hmong American had almost 700 members and was the second ethnic-based credit union in the Twin Cities to disappear in a week, after the $6 million Ukrainian Credit Union said it was being merged by the $664 million TruStone Financial Credit Union this summer.