The Wisconsin Office of Credit Unions liquidated the $8.4 million Wausau Postal Employees CU of Wausau, Wis., on Friday and appointed the NCUA liquidating agent.
It is the fourth federally insured credit union liquidation this year.
The federal regulator immediately signed an agreement with the $1 billion CoVantage CU of Antigo, Wis., to purchase and assume Wausau Postal’s assets, liabilities and membership. CoVantage, a state-chartered credit union, has more than 74,000 members with a field of membership that includes several counties in Wisconsin and two in Michigan.
The NCUA said in a release that Wausau Postal’s declining financial condition led to its closure. Net worth was still in the well capitalized zone, falling from 13.65% in March 2011 to 11.16% as of March 2012. However delinquencies plagued the institution, with Wausau Postal reporting nearly 9% delinquent loans to total loans in March 2011, improving to 6.63% this past quarter.
Return on assets was positive in March 2012, with the credit union reporting 0.09%, but it had been bleeding at an annualized rate of between 4% and 5% for the year prior to that, and hadn’t gained positive ROA since December 2009. The credit union reported a net loss of $422,171 in 2011, although it had posted a $1,840 gain during first quarter 2012.
At the time of liquidation, the credit union served 845 members. Chartered in 1932, Wausau Postal served postal and federal employees and their families in two ZIP codes.