Philadelphia CU Liquidated
The NCUA liquidated the $14 million Mayfair Federal Credit Union in Philadelphia on March 31.
Mayfair FCU, the fourth liquidation in 2014, was placed into conservatorship by the NCUA last year. It was chartered in 1936 and had 1,519 members at the time of liquidation, according to the credit union's most recent call report.
The $623 million Freedom Credit Union in Warminster, Pa. immediately assumed Mayfair's members and deposits, a portion of its loan portfolio and other assets.
Although Mayfair FCU reported 13.31% net worth as of Dec. 31, delinquent loans to total loans increased significantly over the past year, from 6.06% in December 2012 to 24.80% one year later. However, net charge offs remained around 1% or less during that same period. Additionally, the credit union did not increase its allowance for loan losses as delinquencies increased.
The credit union's high loan concentration intensified its loan delinquency issues. As of year-end 2013, Mayfair's loan-to-share ratio was 87.62%, down from 92.84% at year-end 2012 and a high of nearly 95% as of March 31, 2013.
Salary and benefits paid to full-time employees more than doubled during the fourth quarter of 2013, from less than $50,000 in previous quarters to $111,106 as of Dec. 31, the NCUA data showed.