The National Credit Union Administration Thursday liquidated the $6.3 million IBEW Local 816 Federal Credit Union of Paducah, Ky.
The NCUA made the decision to liquidate IBEW Local 816 discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations, the regulator said in a release.
The 929-member credit union's financial reports posted on the NCUA's website reveal a loan delinquency issue, but as of March 31, IBEW Local 816's reported 10.41% net worth covered its 4.82% in delinquencies. However, delinquent loans had historically ran around 10%, dropping during the first quarter of 2014,
The credit union had reported net profits that produced around 1% return on average assets, far higher than its negative ROA peer average.
Debra C. Pyfrom was listed on the NCUA's website as the credit union's manager.
The NCUA's Texas-based Asset Management and Assistance Center will issue correspondence in the near future to individuals holding verified share accounts, the agency said in its release.
Chartered in 1954, IBEW Local 816 served members, employees and their families of the International Brotherhood of Electrical Workers, AFL-CIO, in Paducah.
It is the sixth federally insured credit union liquidation in 2014.
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