The NCUA placed the $106 million Shreveport Federal Credit Union into conservatorship Thursday to resolve its unspecified safety and soundness issues while the Louisiana cooperative remains open to serve its 22,235 members.
“(The) NCUA placed Shreveport Federal Credit Union into conservatorship to enable the credit union to continue regular operations with experienced management in place and to work to correct operational weaknesses,” the federal agency said in a prepared statement.
The NCUA did not specify the operational weaknesses it is correcting.
According to NCUA financial performance reports, Shreveport FCU’s net income declined from $1.5 million in 2012 to $662,710 in 2016 even though its total loans increased from $69.4 million to $79.6 million in the same years. The credit union’s allowance for loan and lease losses increased from $1 million in 2012, to $1.3 million in 2013 and $2 million in 2014. Its ALLL fell slightly to $1.8 million in 2015 and dropped again last year to $1.5 million.
Shreveport FCU’s total investments plummeted from $13.4 million in December 2013 to $5 million at the end of 2016, according to NCUA financial performance reports. In the same years, the credit union also posted increases in its operating expenses. For example, in 2012, Shreveport FCU’s operating expenses jumped from $3.6 million to $4.7 million in 2015. At the end of last year, its operating expenses fell slightly to $4.5 million.
The Louisiana cooperative’s net worth declined from 15.60% in 2012 to 14.65% in 2016, while its ROAA fell from 1.71% in 2012 to 0.62% at the end of last year, according to NCUA financial performance reports.
The credit union’s delinquent loan ratio was 1.97%, higher than the peer average of 0.92%, and its net charge-offs ratio was 1.01%, considerably higher than the peer average of 0.48%.
The credit union has 68 full-time employees and five part-time employees, according to its December 2016 Call Report.
