ALEXANDRIA, Va. - NCUA liquidated tiny IBEW Local 816 Federal Credit Union of Paducah, Ky., Thursday afternoon.
The regulator said it made the decision to close the CU and discontinue its operations after determining the institution was "insolvent and had no prospect for restoring viable operations."
The CU had assets of approximately $6.3 million and served 929 members. It was chartered in 1954 and served members, employees and their families of the International Brotherhood of Electrical Workers, AFL-CIO, in Paducah.
IBEW Local 816 is the sixth federally insured credit union liquidation this year.
An examination of the CU's recent call reports does not clearly indicate trouble was brewing:
In its most recent call report, IBEW Local 816 FCU reported $22,251 in Q1 net income. Its net worth ratio as of March 31 was 10.41% ("well capitalized").
- In 2013 it reported $68,045 in net income, after paying $4,457 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 10.02% ("well capitalized").
- In 2012 it reported $73,631 in net income, after paying $5,346 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 9.35% ("well capitalized").
- In 2011 it reported $83,149 in net income, after paying $12,537 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 8.71% ("well capitalized").
- The only year in the last five it reported a loss was 2010, when it had negative net income of $26,041 - but that figure included paying $5,765 to the Temporary Corporate CU Stabilization Fund and $4,741 to the NCUSIF. Its net worth ratio was 8.11% ("well capitalized").
- In 2009 it reported $15,661 in net income. Its net worth ratio was 10.19% ("well capitalized").
NCUA's Asset Management and Assistance Center said it will issue correspondence in the near future to individuals holding verified share accounts in the credit union.
