The $14.3 million Mayfair Federal Credit Union in Philadelphia was placed in conservatorship Friday by the NCUA despite reporting a net worth of 13.69% in September.
“Normal member services at the main office at 2844 St. Vincent St. in Philadelphia will continue uninterrupted. The credit union’s branch at 2645 Orthodox St. in Bridesberg, Pa., will be closed. During the conservatorship, NCUA will work to resolve issues affecting the institution’s safety and soundness,” said an NCUA press release issued after a closed meeting on Friday.
The NCUA said Mayfair FCU, which serves a low-income area in the city, is the fourth federally insured credit union that has been placed into conservatorship this year.
Mayfair’s net worth went from 14.59% in September 2012 to 13.69% in September 2013, according to NCUA's most recent Financial Performance Report.
Delinquent loans went from 6.17% to 14.08% during the same period. Mayfair also lost $87,447 in the third quarter, continuing a string of money-losing quarters.
The NCUA share insurance fund will continue to insure individual accounts at up to $250,000.
Mayfair Federal Credit Union was chartered in 1936 and has 1,527 members. Chris Biederman is the current CEO.
“The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests or protect the Share Insurance Fund,” said the NCUA release.