$3 Million Border Lodge CU in Vermont Shuttered
The Vermont Department of Financial Regulation on Friday closed the $3.1 million Border Lodge Credit Union of Derby Line, Vt., and appointed the NCUA as liquidating agent.
The Vermont Department of Financial Regulation said it made the decision to liquidate the credit union to conserve the assets and protect the interests of credit union members.
At first glance, the credit union’s financials show a healthy institution: the 1,097-member credit union reported a nearly $62,000 net profit as a Sept. 30 and 11.34% net worth. However, while delinquencies jumped from 1.61% as of March 31 to 2.69% as of Sept. 30, provision for loan losses fell during the same period, from 0.85% to 0.37%. The credit union also reported a big jump in return on assets during 2013, from 0.70% in the first quarter to 2.69% in the 3rd quarter.
Originally chartered in 1963, Border Lodge served employees of varied and approved occupational groups who work within Orleans County, Vt., and members of their immediate families. It is the 11th federally insured credit union liquidation in 2012.