NCUA official seal. Credit/NCUA
The National Credit Union Administration said Friday it liquidated Soul Community Federal Credit Union in Austell, Ga., just six months after receiving its charter and share insurance coverage.
“The NCUA made the decision to liquidate Soul Community Federal Credit Union and discontinue its operations after determining the credit union was insolvent and in violation of numerous provisions of the Federal Credit Union Act and NCUA rules and regulations, including operating in an unsafe and unsound manner,” the federal agency said in a prepared statement.
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Former Soul Community President/CEO Darrius Butler declined to comment when reached by CU Times Friday. He said he expects to comment in the coming days or weeks.
Chartered in December, Soul Community opened for business in January.
Its first-quarter Call Report showed zero loans, no member or non-member deposits, zero income from loans or investments, no non-interest income and zero expenses. The report listed $308,800 in assets and 21 members, with a potential field of membership of 200. It reported no employees.
The report also listed $1,000 in cash on deposit at a corporate credit union, $300 in share drafts and $200 in regular shares. In December, the credit union posted $350,000 in assets.
Under the Federal Credit Union Act, the absence of core operations such as loans, deposits and member services constitutes insolvency, giving the NCUA authority to liquidate the institution.
Although the credit union opened in January, the NCUA published a December 2024 Call Report.
This is the second credit union liquidation of the year. In April, the federal agency closed the $49 million Unilever Federal Credit Union of Englewood Cliffs, N.J., after determining the credit union was insolvent and had no prospect for restoring viable operations. Unilever was chartered in 1948.
READ MORE: Soul Community’s First Quarter Call Report.
Peter Strozniak can be reached at [email protected].
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
