Due to its “declining financial condition,” the Saguache County Credit Union was placed into conservatorship by Colorado regulators and the NCUA was named the conservator, the NCUA announced Friday.
Saguache County CU, headquartered in Moffat, Colo., saw its losses grow from $17,781 in the first quarter to $204,779 in the second quarter, according to the Call Report filed with the NCUA. It has assets of $17.7 million and 3,165 members.
The community development credit union has shown a loss for every quarter for at least the past year, the NCUA report said.
At the end of June, the credit union’s net worth ratio was 2.2%, compared with 3% at the end of March. Its delinquent loan ratio was 5% at the end of June, compared with 6.5% at the end of March.
It has had a negative return on average assets for at least the last four quarters. At the end of June, its return on average assets was -2.26%, and it was -.38% at the end of March.
The NCUA said operations will continually normally at all three of the credit union’s branches. It is the ninth federally insured credit union placed into conservatorship this year.