RICHMOND, Va.–NCUA has placed into conservatorship a credit union here that has capital below 3%.
The agency said it has taken over operations at the $8.039-million Richmond City Employees FCU. The CU, which has approximately 836 members, reported a net loss that is one-eighth its asset size--$495,477—as of Sept. 30. It has a paltry 2.31% capital as of the same date.
The agency reported it conserved RCEFCU due to “unsafe and unsound practices.”
“While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s operations,” the agency said.
According to Call Report data, RCEFCU’s capital dropped dramatically in less than a year, falling from 8.98% at the close of 2021 to 2.32% through September of 2022. The CU made $77,862 in 2021.