LIQUIDATED: Riverdale Credit Union ceases to exist, memberships and assets taken over by Louisiana company

Published 8:02 pm Tuesday, December 5, 2017

Nearly six months after Riverdale Credit Union was placed into a conservatorship for “unsafe and unsound practices,” the credit union has been liquidated.

According to the National Credit Union Administration (NCUA), Jefferson Financial Federal Credit Union has “assumed Riverdale Credit Union’s membership, shares, loans and most other assets.”

“It’s all been purchased and assumed by Jefferson Financial. Riverdale no longer exists, and loans, members and assets all went to Jefferson Financial,” said John Fairbanks, a public relations specialist with the NCUA.

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Fairbanks said there are three options once a credit union is placed into a conservatorship. He said a credit union can resolve its issues and come out of conservatorship, a credit union can close and a credit union can be liquidated, which is what has happened with Riverdale.

Fairbanks said the decision to liquidate the credit union was made by the NCUA.

“NCUA made the decision to liquidate Riverdale and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations,” the NCUA said in a press release.

According to the NCUA, at the time of its liquidation, Riverdale served 11,572 members and had assets worth more than $54.9 million. The latest call report for Riverdale Credit Union showed a net income loss of $14,344,180 for the third quarter.

Jefferson Financial, which is based in Metairie, Louisiana, serves more than 43,000 members, and according to its latest call report has assets worth more than $563 million.

Fairbanks said Riverdale members are now members of Jefferson Financial.

“The new Jefferson Financial Federal Credit Union members should experience no interruption in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund,” the NCUA stated.

Individual accounts are insured up to $250,000. Member’s interest in all joint accounts combined is also insured up to $250,000. Retirement accounts are also insured up to that same amount.

A Jefferson Financial employee confirmed Tuesday that the Selma location on Highland Avenue is open. It is unclear if the mill location is open. Phone calls to the location were not returned Tuesday.

The employee said the company was “not at liberty to discuss the acquisition,” so other details are also unclear.

When Riverdale was placed into a conservatorship by the NCUA in June, the credit union’s first quarter call report listed 12,433 members and more than $76 million in assets. The report also showed a total of 7,178 loans.

Of those, 283 were reported delinquent, which was a delinquency rate of 3.7 percent.

The total amount of delinquent loans at that time was more than $2 million.

Members with questions can contact Jefferson Financial Federal Credit Union at (334) 872-9096 or (334)-875-4624.

“People who are now Jefferson Financial members need to know they still have a credit union, they still have access to services and most importantly, I think, is their accounts are still insured the way they were before,” Fairbanks said. “Nothing has changed in that regard.”

Riverdale Credit Union was chartered in 1967 and served people in Autauga, Chilton, Dallas, Lowndes, Perry and Wilcox counties.

According to the NCUA, Riverdale is the fifth federally insured credit union to be liquidated in 2017.