NCUA Shutters Pennsylvania CU
NCUA has liquidated Lock Haven Area FCU and transferred its 3,300 members' accounts to Horizon FCU in nearby Williamsport, Penn. Lock Haven Area FCU had $11 million in assets and was losing money at a rapid pace, the agency said.
It reported a $475,00 loss in the first quarter, after a $710,000 loss in 2004 and had a net worth ratio of negative 3.8%, according to Callahan & Associates.
Authorities are currently investigating whether there was wrongdoing in the demise of the credit union. Lock Haven FCU was expected to open as a branch of Horizon FCU within the next few days, and Lock Haven members will have access to the credit union at that time.
According to local new reports, Lock Haven members were unaware the CU was closing and showed up to do business, only to find a sign about the closure taped to the door.