The National Credit Union Administration announced that it has liquidated Shreveport Federal Credit Union of Shreveport, La. In addition, Red River Employees Federal Credit Union of Texarkana, Texas, immediately assumed Shreveport FCU’s membership and most shares, loans, and other assets.
As previously reported, NCUA had placed Shreveport FCU into conservatorship in April 2017.
But now, NCUA decided to liquidate Shreveport FCU and discontinue its operations after determining the credit union “was insolvent and has no prospect for restoring viable operations.” At the time of liquidation and subsequent purchase by Red River Employees FCU, Shreveport FCU served more than 22,000 members and had assets of approximately $86 million.
Red River Employees FCU, with about $807 million in assets, serves about 84,000 members.
John Fairbanks, a public relations specialist at NCUA, told Credit Union Journal by email that “when we conserved Shreveport back in April, we installed a new management team. That team’s job is done, so they will be leaving the credit union.”
John Stephens, a senior vice president at Red River, told Credit Union Journal that while the senior management of Shreveport FCU has been dismissed back in April, a number of “lower level management” and certain other employees of Shreveport FCU are being retained by Red River.
NCUA assured that the new members of Red River Employees FCU should experience “no interruption” in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund.
Shreveport FCU was the third federally insured credit union liquidation of 2017.
According to Call Reports, Shreveport FCU posted net income of about $663,000 in 2016, after recording a figure of $823,000 in the prior year. As of June 30, 2017, Shreveport FCU had total loans and leases of about $76 million.