Valued Members FCU goes into conservatorship
JACKSON — National Credit Union Administration regulators who took over troubled Valued Members Federal Credit Union’s Jackson, Canton and Lena locations yesterday say they hope the $9-million institution can be returned to the control of its members.
The alternative is to arrange a transfer of the assets of the 2,030-member credit union to another credit union willing to take on responsibilities for the assets, said Ken Chapman, an Ohio credit union finance specialist appointed CEO of the credit union by the NCUA.
“We want to determine can it be an on-going situation and turned around,” Chapman said Regulators say Valued Members reported a loss of $668,993 this year and $784,564 in 2010.
NCUA action will not affect most customers of the federally chartered credit union. Deposits are insured up to $250,000, and operations will continue without interruption, according to the NCUA.
Chapman said his immediate task is to become familiar with Valued Members’ operation and to determine the viability of outstanding loans, most of which are collateralized consumer loans. No more than two or three are home mortgages, he said.
He said problems have occurred in the lending area but he has yet to determine the extent of them.
What must be determined, he said, is whether these loans are collectible.
At first glance, said Chapman, “The numbers don’t look good.”
The NCUA dismissed the credit union’s management and dissolved its board of directors upon initiating the takeover.
“The first thing we’re going to determine is can it be turned around and turned back over to its membership,” Chapman said.
Valued Members Federal Credit Union was originally chartered in 1957 and serves Leake County, the underserved community of Madison County and a number of employee groups in and around Jackson, the NCUA says.
Valued Members Federal Credit Union is the fourth federally insured credit union placed into conservatorship during 2011.
To sign up for Mississippi Business Daily Updates, click here.
One Response to “Valued Members FCU goes into conservatorship”
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Officials set hunting dates for birds; expands dove season by 20 days
- Brandon man hauls in record 756-pound alligator
- Is cotton looking too good? Farmers facing weaker prices
- Woman found guilty of murder in buttocks injection case
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- Mississippi judge dismisses lawsuit seeking to overturn Sen. Cochran's GOP primary win
- Healthcare Marketplace to look much the same in 2015