NCUA Liquidates Two Previously Seized Small CUs
The NCUA has liquidated two small credit unions that had previously been placed into conservatorship and transferred their remaining assets to two other institutions.
First was the tiny $88,359 First Kingdom Community FCU, which had been placed into conservatorship on May 16. According to the former Selma, Ala.-based credit union’s financial performance reports, it had suffered from poor loan quality that had eventually reduced loans outstanding to $0.
The NCUA said Friday in a release that it made the decision to liquidate First Kingdom and discontinue its operations after determining this was the best course of action for continued service for its 76 members.
The $60 million Riverdale Credit Union, also of Selma, assumed First Kingdom’s member shares. Chartered in 2007, First Kingdom served persons who lived, worked, worshipped, or attended school in Dallas County, Ala., and some businesses in the area.
The NCUA also liquidated the $1.6 million NCP Community Development FCU of Norfolk, Va. The regulator had placed the 709-member credit union into conservatorship Feb. 8.
According to the credit union’s financial performance reports, employee compensation increased from $9,819 in 2011 to $151,225 in 2012. That total employee compensation figure was roughly three times the credit union’s loan income during that same time period.
The NCUA said it made decision to liquidate NCP and discontinue operations after determining it was insolvent and had no prospect for restoring viable operations. Chartered in 1999, NCP served certain underserved communities in Norfolk, Chesapeake and Portsmouth, Va.
Nine credit unions have been liquidated so far this year, the NCUA said.