A $55 million-in-assets credit union in Alabama became the fifth federally insured credit union to be liquidated in 2017; the 11,500 members and their savings and loans were merged into a Louisiana credit union, the National Credit Union Administration (NCUA) announced Monday.
Riverdale Credit Union of Selma, NCUA said, was liquidated after the agency determined the credit union “was insolvent and had no prospect for restoring viable operations.” The credit union was placed into conservatorship on June 22, 2017, the agency said, as a result of unsafe and unsound practices at the financial institution.
The 50-year-old credit union served persons who live, work, worship, or attend school in the Alabama counties of Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox, as well as various employee groups.
According to NCUA, the membership, shares and most other assets (including loans) were assumed by Jefferson Financial Federal of Metairie, La. Jefferson Financial FCU has about 44,000 members and $563 million in assets.