The NCUA conserved the $76.1 million Riverdale Credit Union in Selma, Ala. Thursday for unspecified safety and soundness issues, according to the federal agencies prepared statement.
Though Riverdale posted a net worth of 12.58% at the end of the first quarter, its delinquency loan ratio was 3.69%, significantly higher than the peer average of 0.94%, according to NCUA financial performance reports.
The credit union posted an ROAA of 3.88% at the end of March, much higher than the peer average of 0.40%.
While the Alabama credit union’s loan income grew from $3.1 million in 2012 to $5.2 million in 2016, Riverdale’s provision for loan losses also increased substantially from $637,365 in 2012 to more than $2 million at the end of last year.
However, at the end of the first quarter, Riverdale recorded a provision for loan losses of only $60,966, but it also recorded an allowance for loan losses of $1.4 million, according to NUCA financial performance reports.
Over the last five years, the credit union has not posted any net income losses. At the end of the first quarter, Riverdale reported a net income of $721,705, compared to a net income of $194,698 in March 2016.
Up through the first quarter, Linda S. Walker was listed as Riverdale’s president/CEO who served in that position at least from June 2012, according to the credit union’s profile reports. In 2015, Walker’s salary totaled $139,227, according to Riverdale’s latest Form 990 document filed with the IRS.
But Walker is not listed as the CEO. Instead, Barbara Campbell, a bank consultant in Selma, is listed at Riverdale’s CEO, the credit union’s current profile shows.
Riverdale employs 15 full-time staffers and serves more than 12,000 members, according to its first quarter Call Report.
