Tuesday, December 5, 2017

NCUA Closes Riverdale CU

The National Credit Union Administration on December 4 liquidated Riverdale Credit Union of Selma, Alabama.

Jefferson Financial Federal Credit Union of Metairie, Louisiana, immediately assumed Riverdale Credit Union’s membership, shares, loans, and most other assets.

Riverdale was placed into conservatorship on June 22, 2017, as a result of unsafe and unsound practices at the credit union. NCUA made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

Read my November 2 blog post on Riverdale's deteriorating financial condition.

At the time of liquidation, Riverdale served 11,572 members and had assets of $54,924,278, according to the credit union’s most recent Call Report. Chartered in 1967, Riverdale Credit Union served persons who live, work, worship, or attend school in Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox counties in Alabama as well as various employee groups.

Riverdale is the fifth federally insured credit union liquidation in 2017.

Read the press release.

2 comments:

  1. Didn’t Jefferson just issue $10M in secondary capital?
    Is this why?

    ReplyDelete
  2. Wait.
    Is it possible that NCUA is letting credit unions issue capital to investors so that the issuing credit union can clean up ncua’s supervisory mess?
    Who were the investors in jefferson’s Issuance?
    What was the disclosure as to use of funds?

    ReplyDelete