Magnolia FCU purchased and assumed the assets of Valued Members FCU, which the NCUA liquidated on May 31 after conserving it last month because of its financial problems. It is the ninth federally insured credit union liquidated in 2011.
Magnolia FCU, a Jackson, Miss.-based financial institution with $104 million in assets acquired another Jackson-based credit union that had experienced several difficult quarters.
Valued Members FCU’s assets declined 6.1% in the first quarter of 2011 and 15.4% in the last quarter of 2010, according to the financial performance report it filed with the NCUA. The value of its loan portfolio declined 7.3% in the first quarter of 2011, following a decline of 4.1% in the last quarter of 2010.
Its delinquent loan ratio was 6.43% at the end of March and 2.51% at the end of December. Its net worth ratio was 0.17% at the end of March and 5.38% at the end of December. Its return on average assets ratio was negative 28.61% at the end of March and negative 7.59% at the end of December.
It had $9 million in assets.