The Iowa Credit Union Division has placed Louden Depot Community Credit Union in Fairfield, Iowa, into receivership.
The regulatory agency on Friday tendered the $5 million-asset credit union's receivership to the National Credit Union Administration. The $505 million-asset Community 1st Credit Union in Ottumwa, Iowa, immediately assumed most of Louden Depot's members, assets and loans. Louden Depot served 790 members, according to its most recent call report.
The Iowa Credit Union Division said it made the decision to take over after determining that the credit union was "insolvent with no prospect for restoring viable operations on its own." Louden Depot is the seventh federally insured credit union liquidation so far this year.
The credit union reported $37,698 in net income for the first half of this year. Its net worth ratio at June 30 was 12.47%, making it well capitalized.