The National Credit Union Administration on Monday liquidated Riverdale Credit Union of Selma, Alabama.
Riverdale is the fifth federally insured credit union liquidation in 2017, the regulator said.
Jefferson Financial Federal Credit Union of Metairie, La., immediately assumed Riverdale Credit Union’s membership, shares, loans and most other assets, NCUA said. Jefferson Financial FCU has 43,849 members and assets of more than $563 million, according to the credit union’s most recent call report.
Riverdale was placed into conservatorship on June 22, with the regulator citing safety and soundness concerns as the reason for conservatorship.
NCUA said it made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was “insolvent and had no prospect for restoring viable operations.”
At the time of liquidation and subsequent purchase by Jefferson Financial, Riverdale served 11,572 members and had assets of $54,924,278, according to the credit union’s most recent Call Report.
Chartered in 1967, Riverdale Credit Union served 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 NCUA, former Riverdale CU members who now are Jefferson Financial FCU members should experience no interruption in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.