The NCUA has assumed control of the tiny First Kingdom CommunityFCU of Selma, Ala.

Chartered in 2007, First Kingdom has 76 members and assets of$88,400.

According to First Kingdom Community's financial performancereports posted on the NCUA's website, the credit union currentlyhas no loans outstanding. Loans have dwindled since December 2010,when the credit union reported $27,186 in total loans, acombination of unsecured and other loans.

In June 2012, that number had decreased to $1,476, but 100% oftotal loans were reported as delinquent. Forty-seven percent ofaverage loans were charged off in Sept. 2012, and another 35.45%were charged off as of 2012 year-end.

First Kingdom Community's loan losses began in June 2011, whenthe credit union's perfect loan delinquency record was broken anddelinquencies shot up from 0% the previous quarter to 38.26%.

Ironically, June 2011 was the quarter that saw the creditunion's highest net worth number of 8.04%. That period began adownward spiral that resulted in the current financial numbers,which include just 5.64% net worth as of March 2013 and a negative4.58% ROA.

Despite the credit union's loan quality issues, the NCUA said ina release it will not immediately liquidate the credit union, butrather “will work to resolve issues affecting the institution'ssafety and soundness.”

First Kingdom Community serves persons who live, work, worshipor attend school in, Dallas County, Ala. According to 2010 Censusfigures, 36% of the county's population is below the povertyline.

First Kingdom Community is the second federally insured credit union placed intoconservatorship during 2013. The NCUA has also liquidated six credit unions this year.