RICHMOND, Va. - It was the end of the line Friday for $7.9 million Life Line Credit Union, as it was shuttered by the Virginia State Corporation Commission.
The state regulator said it made the decision to close Life Line and discontinue its operations after determining the credit union is "insolvent and has no reasonable prospect for restoring viable operations," according to a statement released by NCUA, which was appointed as receiver to act as liquidating agent.
Virginia Credit Union Inc., a $2.6 billion-asset institution based in North Chesterfield, Va., assumed all member shares. Life Line members will become members of Virginia CU.
Virginia CU has 232,855 members, according to the credit union's most recent call report. At the time of liquidation, Life Line CU served 2,076 members. It was chartered in 1969 and served employees of the Bon-Secours Richmond Health System and Central Virginia Health Network.
In its March 2014 call report, Life Line CU reported losing $6,447 in the first quarter of the year. Its net worth ratio was 4.78% ("undercapitalized").
In 2013 the CI lost $83,033, including paying $5,770 to the Temporary Corporate Stabilization Fund. Its net worth ratio was 5.19% ("undercapitalized").
In 2012 it lost $79,491, including an assessment of $7,245 to the Temporary Corporate Stabilization Fund. Its net worth ratio was 6.01% ("adequately capitalized").
The last year Life Line reported positive income numbers was 2011, when it made $34,623 from operations. It paid $19,976 to the Temporary Corporate Stabilization Fund, leaving it with $14,647 in net income. Its net worth ratio was 6.48% ("adequately capitalized").
NCUA said its Asset Management and Assistance Center will take charge of Life Line's assets and loans and will issue correspondence to individuals who have loans with the credit union "in the near future."
Life Line CU is the fifth federally insured credit union to be liquidated in 2014.
