MARKS, Miss. – NCUA said Friday it has taken under conservatorship First Delta FCU, a one-time $7.5 million community development credit union pushed into insolvency by a $1.5 million embezzlement by one of its employees.
The failure, along with Friday’s takeover of Cumorah CU in Las Vegas, makes a total of 23 credit union failures so far this year.
First Delta, which had almost zero net worth at mid-year, was the victim of a loan fraud by one of its loan officers, who was jailed earlier this year for stealing almost $1.5 million from the institution.
The credit union, which reported a $585,000 loss for 2008 and a $222,000 loss for the first six months of 2009, had just $5.4 million of assets by the time it was taken over by NCUA.
First Delta serves people residing in Quitman, Panola, Tallahatchie and Coahoma counties in the state of Mississippi.
