The NCUA announced Wednesday that a Virginia credit union has been voluntarily liquidated.
New Bethel Federal Credit Union of Portsmouth, Va. was first placed into conservatorship on April 30. The $102,000 credit union served 172 members.
“The NCUA placed New Bethel into conservatorship to enable the credit union to continue regular operations with experienced management in place and correct previous service and operational weaknesses,” the agency said at that time. “While continuing normal member services, the NCUA will work to resolve issues affecting the institution's safety and soundness.”
New Bethel FCU had an equity ratio of 85.53% at the end of March this year, and an ROA of negative 0.26%. This is a marked improvement, however, over an ROA of negative 6.12% at the end of March 2014.
The NCUA issued New Bethel FCU a cease and desist order in December of last year. Under the NCUA's order, New Bethel officials had to meet several requirements including charging off all non-performing loans, not granting any new loans, and providing the NCUA with complete financial statements and up-to-date member share and loan transactions.
The credit union's call report from March appeared to indicate that it had met those goals.
The NCUA said in a media release Wednesday that the decision to voluntarily liquidate New Bethel FCU and discontinue its operations was made after determining the credit union was unable to restore viable operations.
In the release, the NCUA said its Asset Management and Assistance Center will contact individuals holding verified share accounts with the credit union within one week.
New Bethel FCU was chartered in 1978 and served members and employees of New Bethel Baptist Church in Portsmouth. It is the sixth credit union to be liquated this year.
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