NCUA Liquidates Two West Virginia Credit Unions

More than five weeks after the NCUA conserved two West Virginia credit unions on Oct. 7, they were liquidated – bringing this year’s total number of credit union failures to six, the federal agency said Tuesday.

In prepared statements, the NCUA said it decided to discontinue operations of both credit unions after determining they were insolvent and had no prospect for restoring viable operations.

While Mingo County Education Federal Credit Union in Williamson and O.F. Toalston Federal Credit Union in Logan posted no significant financial losses, they both recorded very high delinquent loan ratios, according to NCUA financial performance reports.

Mingo recorded a delinquent loans to total loans ratio of 64.93% in the third quarter, compared to 3.30% in the second quarter, while its delinquent loans and net charge-offs to average loan ratio was 67.15% in the third quarter, compared to 4.06% in the second quarter.

O.F. Toalston recorded a delinquent loans to total loans ratio of 59.96% in the third quarter, compared to 0.82% in the second quarter, while its delinquent loans and net charge-offs to average loan ratio was 59.03% in the third quarter, compared to 0.80% in the second quarter.

According to NCUA profile reports, Michelle Barrett has been the CEO for both credit unions since at least June 2012. A website is not listed for either credit union.

Chartered in 1977, Mingo served 457 members who were employees of primary and secondary public, private, and parochial schools and colleges and universities in Mingo County.

Chartered in 1949, O.F. Toalston served 175 members who were employees of the Appalachian Power Company and worked in the Logan Plant and in the Logan District in Logan, Boone, Mingo, Lincoln and Wyoming counties.

Within one week, the NCUA said its Asset Management and Assistance Center will issue correspondence to the members of both credit unions who hold verified share accounts.