An Atlanta, Ga.-based credit union that was conserved by the federal credit union regulatory agency Friday showed a nearly $150,000 net loss just in the first quarter and losses of more than half that amount during the first and second quarters of 2023 combined, according to financial performance report data on the agency’s website.
The National Credit Union Administration (NCUA) late Friday announced it had, in consultation with the Georgia banking regulator, placed the federally insured, state-chartered 1st Choice Credit Union into conservatorship. The credit union last reported total assets of $38.6 million, the agency said, and had 6,709 members.
NCUA’s online data shows the credit union with a ratio of delinquent loans to total loans of 10.68% as of March and a ratio of delinquent loans to net worth of 86.18%. Both ratios posted many times higher than the peer average over the past year, the report shows.
Net income to average assets (ROAA) was at a negative 1.52% in March. The credit union’s net worth ratio was 8.5%.
1st Choice Credit Union was chartered in 1991, the agency’s online data shows. It serves employees of Grady Hospital, Morehouse School of Medicine faculty, Emory University School of Medicine faculty, Southside Healthcare, Atlanta Life Insurance Company, South Fulton Community Development Corporation, credit union staff, and family members, the NCUA said.