The NCUA liquidated the $14 million Mayfair Federal Credit Unionin Philadelphia on Monday.

Mayfair FCU, the fourth liquidation in 2014, was placed into conservatorship by theNCUA last year to protect its financial stability.

“NCUA made the subsequent decision to liquidate and discontinueoperations after determining the Mayfair was insolvent with noprospect for restoring viable operations,” the agency said in apress release on Monday.

Mayfair FCU, chartered in 1936, had 1,519 members at the time ofliquidation, according to the credit union's most recent callreport.

The $623 million FreedomCredit Union in Warminster, Pa. immediately assumed Mayfair'smembers and deposits, a portion of its loan portfolio and otherassets. Freedom is a federally insured, state-chartered creditunion, which serves more than 60,000 members.

Although Mayfair FCU reported 13.31% net worth as of Dec. 31,2013, other financial ratios reported to the NCUA indicated thecredit union faced financial difficulties.

Delinquent loans to total loans increased significantly over thelast year, from 6.06% in December 2012 to 24.80% one year later.However, net-charge offs remained around 1% or less during thatsame period.

Additionally, the credit union did not increase its allowancefor loan losses as delinquencies increased.

The credit union's high loan concentration intensified its loandelinquency issues. As of year-end 2013, Mayfair's loan-to-shareratio was 87.62%, down from 92.84% at year-end 2012 and a high ofnearly 95% as of March 31, 2013.

Salary and benefits paid to full time employees more thandoubled during the fourth quarter of 2013, from less than $50,000in previous quarters to $111,106 as of Dec. 31.