JEFFERSON CITY, Mo. – NCUA said it is closing down newborn Missouri Farmers Union CU and merging it into nearby River Region CU because of the declining financial status of the low-income credit union.
Missouri Farmers Union CU, which opened two years ago to much fanfare, reported just $24,380 in net capital on $1.1 million in assets, a 2.2% capital ratio, for year-end 2007. The credit union, which was chartered to serve members of the state farmers cooperative, never attracted more than 180 members and had net income of just $7,100 for 2007, after a $16,900 loss the year before.
Because of the poor financial health of the credit union, a vote of the membership is not required for the merger.
Missouri Farmers Union CU was the first credit union chartered by the state in seven years.
