Saying that it is "
minimally capitalized and there are no reasonable prospects for the credit union to achieve adequate capitalization," the NCUA today announced it was liquidating Kappa Alpha Psi FCU.
The Addison, Texas-based credit union, which had $779,854 in assets as of March 31, saw its loan income decline by 49.1% in the first quarter of 2010, the most recent data available. In the fourth quarter of last year the income fell 65%.
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Its net worth ratio was 1.95% as of March 31 and 0.58% as of last Dec. 31.
As of March 31, its delinquent loan ratio was 22.42%, up from 11.77% as of last December 31.
Its return on average assets was -0.65% on March 31, compared with -0.61% as of December 31.
The credit union signed a letter of understanding with the NCUA last year and agreed to improve what the agency characterized as poor recordkeeping and unsafe loan practices.
Kappa Alpha Psi FCU was a virtual credit union with no full-time employees and was a low income credit union. It was founded in 2004 and had 1,341 members.
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