Riverdale Credit Union taken into conservatorship
Published 3:33 pm Friday, June 23, 2017
Riverdale Credit Union in Selma has been taken into conservatorship due to “unsafe and unsound practices at the credit union,” according to National Credit Union Administration (NCUA).
The NCUA and Alabama Credit Union Administration have assumed control of Riverdale Credit Union since Thursday.
John Fairbanks, a public relations specialist with the NCUA, said the agency could not comment Friday on how the “unsafe and unsound practices” at Riverdale were discovered. Details on what the practices were also could not be discussed.
According to Riverdale Credit Union’s latest call report, which is dated March 31, 2017, the credit union has 12,433 members and more than $76 million in assets.
Fairbanks said the NCUA is managing the credit union, and it will continue to operate.
“When we put a credit union into conservatorship, it means we have put in new management at the credit union, and it also means that the credit union remains open,” he said. “It’s open just like it was before except we’re running it.”
The credit union will keep current office hours from 9 a.m. to 4:30 p.m. Monday through Friday.
A letter to customers dated June 22, 2017, and signed by NCUA Director of Region 3 Myra M. Toeppe said, “NCUA will make protecting your accounts a priority as we work to correct problems at the credit union.”
According to the NCUA, all individual accounts are insured up to $250,000.
“People are always worried about losing their money, and it’s really important that people understand that their money is safe up to the limits of federal law,” Fairbanks said. “The credit union has not been liquidated, and that’s what happens when you take it down. It’s been conserved.”
At the end of March, Riverdale Credit Union reported a total of 7,178 loans. Of those, 283 were reported as delinquent, which means the credit union has a delinquency rate of 3.7 percent. The total amount of delinquent loans is more than $2 million.
The national average of delinquent loans at credit unions is less than 1 percent.
According to the NCUA, there is no timeframe on when there will be a resolution, and there have been no decisions made about the long-term future of Riverdale Credit Union.
Several patrol cars with the Selma Police Department and the Dallas County Sheriff’s Department were at the credit union throughout the day Friday. Lt. Tory Neely with the Selma Police Department said officers were there to provide security.
Chartered in 1967, Riverdale Credit Union serves Dallas, Autauga, Chilton, Lowndes, Perry and Wilcox counties. According to the latest call report, there were 15 employees at the credit union.
Credit union members with questions may contact the credit union at (334) 872-9096.
Editor Justin Averette contributed to this report.