RICHMOND, Ind.—The $6.97-million Richmond City Employees FCU here has merged into $1.6-billion Kemba CU, based in West Chester, Ohio, NCUA announced.
NCUA placed Richmond City Employees Federal Credit Union into conservatorship on December 12, 2022, and appointed itself as conservator.
At the time of conservatorship, the then $8.039-million Richmond City Employees FCU had approximately 836 members and had reported a net loss that is one-eighth its asset size--$495,477—as of Sept. 30. It had a paltry 2.31% capital as of the same date.
The agency reported it conserved RCEFCU due to “unsafe and unsound practices.”
The agency said it worked to address issues affecting the credit union’s safety and soundness and determined that merging Richmond City Employees Federal Credit Union into Kemba Credit Union was in the best interests of the members.
At the time of the merger, Richmond City Employees Federal Credit Union had 788, according to Call Report data. Chartered in 1961, Richmond City Employees Federal Credit Union served employees of the City of Richmond.
Prior to the merger, Kemba Credit Union served 125,555 members.