Riverdale Credit Union of Selma, Ala., has been placed into conservatorship by both the Alabama Credit Union Administration and the National Credit Union Administration.
Riverdale CU, with about $76 million in assets and more than 12,400 members, was placed into conservatorship because of “unsafe and unsound practices” at the credit union, the agencies said. While continuing normal member services, the regulators “will work to resolve issues affecting the credit union’s safety and soundness,” they added.
Chartered in 1967, Riverdale CU serves persons who live, work, worship, or attend school in Autauga, Chilton, Dallas, Lowndes, Perry, or Wilcox counties in Alabama as well as various employee groups.
According to its call reports, Riverdale CU posted net income of almost $524,000 in 2016, after generating about $626,000 the prior year.
About four years ago, in May 2013, Riverdale CU assumed the members' shares of the tiny Selma-based First Kingdom Community Credit Union which was liquidated by NCUA.
Member deposits at Riverdale CU will remain protected by the National Credit Union Share Insurance Fund, which is administered by NCUA, and insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000.