An $86 million-asset Louisiana federal credit union, with more than 22,000 members, was liquidated Monday by the National Credit Union Administration (NCUA), after the agency determined the credit union was insolvent and had no prospect for restoring viable operations.
The membership of Shreveport Federal Credit Union (Shreveport, La.) and, according to NCUA, “most shares, loans and other assets,” were assumed by Red River Employees FCU of Texarkana, Texas. Red River holds about $807 million in assets and counts about 84,000 members.
In a release, NCUA stated that Shreveport Federal Credit Union is the third federally insured credit union liquidation in 2017. The agency said the credit union was chartered in 1956 and served Shreveport city and transit employees, members acquired through mergers with several smaller credit unions in Mississippi and Louisiana, and a number of other common bond entities.
“The new Red River Employees FCU members should experience no interruption in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund,” NCUA stated. The agency added that the fund (with the backing of the full faith and credit of the United States) insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The fund separately protects IRA and KEOGH retirement accounts up to $250,000, NCUA said.