The National Credit Union Administration liquidated the tenth federally insured credit union in 2013 due to loan quality problems, the Credit Union Times reported.
The $9.25 million Ochsner Clinic Federal Credit Union based in New Orleans, La., was liquidated after the NCUA determined the credit union was insolvent and lacks the potential to restore viable operations.
Loan quality has been an issue with the bank, with loan quality ratios averaging around 4%; however, the numbers have improved in the first quarter to approximately 2%, the article explained.
Since March 2006, the OCFCU veered below 7% net worth, but it never fell below 6% and would return to 7% within a few quarters.
Despite the OCFCU's ability to turn a profit the past couple of years, the credit union was still absorbed by ASI FCU.