ALEXANDRIA, Va.—The Iowa Credit Union Division Friday was granted authority by the District Court to place SCICAP Credit Union of Chariton, Iowa, into receivership and then tendered the receivership to the National Credit Union Administration.
Community 1st Credit Union of Ottumwa, Iowa, immediately assumed most of SCICAP Credit Union’s members, assets and loans. The $534-million Community 1st serves 53,681 members.
The Iowa Credit Union Division made the decision to take over management of SCICAP after determining the credit union was insolvent with no prospect for restoring viable operations on its own. SCICAP is the sixth federally insured credit union liquidation in 2015.
The $2-million SCICAP CU, which served 858 members, had strong capital, steadily building reserves in recent years to 23.57% through June.
After losing $29,033 in 2010, and $19,831 the following year, SCICAP made $22,388 in 2013, $19,666 in 2014, and showed net income of $4,058 through June of 2015.
Chartered in 1968, SCICAP served employees of SCICAP, Inc.; Decatur County; Decatur County Hospital; City of Leon; Westview Corporation; Wayne County; Mosaic, a non-profit human services organization; Southern Iowa Resources for Families, Inc.; Community Health Care Centers of Southern Iowa and members of the Central Decatur Employee Association.