The NCUA on Wednesday liquidated the $2 million Women'sSouthwest FCU of Dallas.

Originally chartered as Feminist Southwest Federal Credit Unionin 1974, the 743-member cooperative served select groups thatshared a common bond of women's advocacy, interest and affiliation.The credit union also served an underserved area in Dallas andother affinity groups.

The $2 million credit union was mentioned in an acceptancespeech at a National Federation of Community Development CreditUnions annual meeting in 2008, described as a “ripple of hope” in the credit union movement.

NCUA made the decision to liquidate WSFCU and discontinueoperations after determining the credit union was insolvent and hadno prospect for restoring viable operations.

WSFCU did have some capital issues, slipping below 7% net worthas of June 30, but improving that figure to 7.54% as of Sept. 30.However, loan quality was a big problem, with the credit unionreporting a whopping 5.07% of total loans delinquent as of Sept.30, up from just 0.27% one year prior.

The effect three loans can have on a small institution ispainfully evident here. Nearly all delinquencies reported duringthe third quarter – $56,274 out of a total $61,228 worth ofdelinquent loans – is in the “other” category, likely coming fromthe credit union's new and used auto portfolio.

The majority of the delinquencies are at least six months pastdue. Additionally, seven members are currently going throughbankruptcy, affecting $73,397 in outstanding loan balances.

NCUA's Asset Management and Assistance Center will transfercertain share accounts to the $260 million City Credit Union ofDallas. For non-transferred accounts, the agency will sendchecks to verified account holders within one week.

WSFCU is the 10th federally insured credit union liquidation in 2012.