DOVER, N.J.–NCUA has liquidated tiny Defense Logistics FCU and sold its assets, member shares and loans to Pentagon FCU.
Defense Logistics has just $506,435 in assets and 219 members, according to its most recent NCUA 5300. It reported a loss of $2,401 as of March 31 and net worth of 7.03%.
NCUA said it made the decision to liquidate Defense Logistics FCU and to discontinue its operations after determining the credit union engaged in unsafe and unsound practices.
Chartered in 1959, DLFCU served civilian and military personnel of the Defense Contract Administration Services District-Newark and the Defense Contract Audit Agency of Northern New Jersey.
The $27-billion PenFed has more than 2.2 million members.
In a statement, NCUA said the new PenFed members will experience no interruption in services.