ALEXANDRIA, Va. — NCUA took over $55 million assets Obelisk Federal Credit Union back in April and has now found a merger partner for it.

NCUA said the administrative maneuver was made for "service and operational weaknesses." The Obelisk's first quarter figures show that the credit union struggled with delinquencies, which grew 118% in the 6-12 month category. Credit cards 1-2 months delinquent were up 596.3% and return on assets was a negative 30.78%. Thus, Obelisk became undercapitalized at 1.41% net worth.

However, it was recently announced that the credit union would be merging with $649 million Centra Credit Union with 114,414 members, net worth of 11.51% and ROA of 0.94%. "Obelisk Federal Credit Union and Centra Credit Union are partnering to better serve all of our members in Southern Indiana. We're proud of this exciting news and we're sure you will be, too," it was announced on Obelisk's Web site (www.obeliskfcu.com).

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.