The NCUA’s official reason for liquidating the $2.4 million Shiloh of Alexandria FCU on April 12 is that the community development credit union was insolvent and had no prospect for restoring viable operations.
However, the Alexandria, Va.-based credit union’s year-end 2012 financial reports reveal no obvious signs of financial trouble. That, coupled with the sudden death of its volunteer manager, John DuPree Jr., just eight days before the NCUA moved in, leaves an intriguing story the regulator isn’t ready or willing to tell.
NCUA Public Affairs Specialist John Fairbanks could not reveal any details about the reasons for the liquidation other than what was provided in the agency’s official press release.
As of Dec. 31, 2012, Shiloh of Alexandria reported 16.52% net worth, 1.08% delinquent loans and no charge-offs. Return on average assets was 1.37%.
The 624-member credit union served members and employees of the Shiloh Baptist Church, a sprawling ministry near NCUA’s headquarters inAlexandria,Va.The cooperative also served a low-income section of Alexandria.
The credit union and DuPree were well known in community development circles, frequently speaking at industry conferences and events, and often cited as a best practices institution. DuPree was the son of credit union founder John DuPree Sr., who died in March 2009 and was a pioneer in the community development credit union movement.
According to an April 10 obituary published in The Washington Post, DuPree Jr. died April 4. His funeral was April 11 on church grounds, the day before authorities seized the credit union on the same property. A U.S. Naval Academy graduate, DuPree will be buried at Arlington National Cemetery.
Dan Morrissey, CEO of the $2 million Queen of Peace FCU of Arlington, Va., attended DuPree’s funeral. Morrissey said he learned of DuPree’s death from Helen DuPree, John Jr.’s mother. Morrissey said the shock of DuPree’s death was surpassed by the shock he experienced Saturday morning when he read that Shiloh ofAlexandria had been liquidated.
“It’s tough on small credit unions when these things happen,” he said. Morrissey said he hadn’t heard why the credit union had been liquidated, but said he thinks the NCUA will release more information in the future.
Shiloh of Alexandria was the fifth federally insured credit union liquidation in 2013.
Calls toShilohBaptistChurchrequesting comment were not returned.