The NCUA announced late Friday it had liquidated the $2.4 million Shiloh of Alexandria Federal Credit Union of Alexandria, Va.
According to a release, the NCUA made the decision to liquidate the volunteer-run credit union and discontinue operations after determining it was insolvent and had no prospect for restoring viable operations.
However, according to the 624-member credit union’s financial reports available on the NCUA’s website, that explanation doesn’t tell the whole story. As of Dec. 31, 2012, Shiloh of Alexandria reported 16.52% net worth, 1.08% delinquent loans and no charge offs. Return on average assets was 1.37%.
As recently as February, NAFCU CEO Fred Becker used the credit union as an example of a successful, tiny credit union with a future.
“I have been there. It will be around as long as it has the support of its church deacons, and there is no reason to think that will change,” Becker told Credit Union Times in the Feb. 27, 2013 issue.
“We are saddened with the recent events. Shiloh has been a special credit union with a special place in credit union history,” Becker said Saturday.
Chartered in 1993, Shiloh of Alexandria served the members and employees of Shiloh Baptist Church, their immediate family members, and an underserved area within the city of Alexandria. It is the fifth federally insured credit union liquidation in 2013.
The credit union was run by John DuPree Jr., the son of founder John DuPree Sr. John DuPree Sr., who died in March 2009, was a pioneer in the community development credit union movement.