Two weeks after conserving it, the NCUA has liquidated Borinquen Federal Credit Union after determining that the $7 million Philadelphia financial institution was “insolvent and had no prospect for restoring viable operations.”
When the agency issued the cease and desist order on June 7, it ordered the credit union to improve some of its accounting and compliance practices.
According to its Call Report, at the end of the first quarter, the 8,600-member credit union's net worth ratio was 15%. Its delinquent loan ratio was 7.5% and its return on average assets was -0.25%.
Friday’s action was the 11th liquidation so far this year by the agency.