Two West Virginia credit unions, the $2.6 million Mingo County Education Federal Credit Union in Williamson and the $478,884 O.F. Toalston Federal Credit Union in Logan, were placed into conservatorship, the NCUA said Friday.
The federal agency said in prepared statements that the credit unions were conserved because of unsafe and unsound practices. According to NCUA profile reports, Michelle Barrett has been the CEO for both credit unions since at least June 2012. A website is not listed for either credit union.
Although MCEFCU posted a decline in loans of 2.7% in the first quarter and a tiny increase in loans of 0.4% in the second quarter, it recorded no income losses, according to NCUA financial performance reports. However, the credit union’s delinquent loans and net charge offs to average loan ratio slightly exceeded 4% in the first two quarters of the year, which is above the peer average of 1.77%.
MCEFCU recorded annual income losses of $13,626 and $36,729 in 2017 and 2019, respectively, and it had net income of $24,596 in 2018, $50,038 in 2020 and $69,282 at the end of 2021, NCUA financial performance reports showed.
But in those same years, the credit union had higher than peer average delinquent loans and net charge-offs, which was 1.69%. In 2017, MCEFCU posted delinquent loans and net charge-offs of 3.52%, 6.69% in 2018, 14.32% in 2019, 10.57% in 2020 and 6.67% in 2021.
OFTFCU did not post any losses in the first and second quarters though it recorded zero membership growth in the same quarters.
However, the credit union posted a loss of $28,262 in 2019 and low four-figure and five-figure income in 2017, 2018, 2020 and 2021, according to NCUA financial performance reports.
While under conservatorship, OFTCU will continue to serve its 175 members who are employees of the Appalachian Power Co., and MCEFCU will continue to serve its 457 members who are employees of primary and secondary public, private and parochial schools, colleges and universities in Mingo County.