The Louden Depot Community Credit Union has become the seventh credit union to be liquidated this year. Last week, the Iowa Credit Union Division placed the organization into receivership and then gave receivership to the National Credit Union Administration, according to Credit Union Journal. The Division stated it found the credit union to be insolvent and unable to continue operations on its own.
Louden Depot Community CU had about $5 million in assets and 790 members. At the end of June, the organization's financials included a 12.47 percent net worth, low loan delinquencies and 1.45 percent gains on its assets, which all point to financial health. However, since March 31, the organization reduced its cash by almost $400,000 and suffered a 19 percent loss on its shares.
The credit unions members will now become part of the Community 1st Credit Union of Ottumwa, Iowa, which assumed Louden Depot's assets and obligations. Community 1st has assets of $505.4 million and serves about 50,946 members.
The NCUA liquidated the International Brotherhood of Electrical Workers Local 816 Federal Credit Union in Paducah, Kentucky, in July. It had assets worth approximately $6.3 million and served 929 members. Like Louden Depot, it was determined the organization was insolvent.
NCUA consulting services
To reduce the risk of liquidation, the NCUA is providing 179 federally insured credit unions with free consulting services. The aid is through the Office of Small Credit Union Initiatives.
"OSCUI's consulting program is a valuable part of our efforts to help credit unions succeed in a changing economic environment and provide needed services to their members," said NCUA Board Chairman Debbie Matz. "Consultants help credit unions think strategically, develop plans and position themselves for future success."
The OSCUI is currently accepting nominations for credit unions to receive consulting in 2015.