The NCUA said Monday it liquidated the $54.9 million RiverdaleCredit Union in Selma, Ala., which posted a net income loss of$14.4 million at the end of the third quarter of 2017.

Riverdale was placed into conservatorship in June 2017 becauseof unsafe and unsound practices that were not specified by thefederal agency. The NCUA's decision to liquidate Riverdale cameafter determining it was insolvent and had no prospect forrestoring viable operations. The NCUA said the $563 millionJefferson Financial Federal in Metairie, La., immediately assumedRiverdale's membership, shares, loans and most other assets.Chartered in 1967, Riverdale served 11,577 members.

In addition to losing millions this year, Riverdale'sdelinquency loan rate at the end of the third quarter was 14%, muchhigher than the peer average of about 1%. The Alabama credit unionrecorded a delinquency loan rate of 13% at the end of the secondquarter, sharply higher than the 2.77% delinquency loan rate at theend of the first quarter, according to NCUA financial performancereports.

Riverdale also posted a net worth of -11.05% and an ROAA of-29.98% at the end of the third quarter.

Although the credit union posted net income gains from 2012 to2016 that ranged from more than $400,000 to more than $600,000, itsallowance for loan losses increased gradually from $587,000 in 2012to more than $1.7 million in 2016, according to NCUA financialperformance reports.

Riverdale is the fifth federally-insured credit union to beliquidated in 2017.