State and federal authorities have forced a change in management at a credit union in southeast Iowa following a June audit. The Louden Depot Community Credit Union in Fairfield has become the seventh federally-insured credit union liquidation in 2014.
The Iowa Credit Union Division placed the state-chartered credit union into receivership on Friday, and then turned receivership over to the NCUA. The Iowa Credit Union Division made the decision to take over management of Louden Depot and determined the credit union was insolvent with no prospect for restoring viable operations on its own.
According to its June 30th NCUA financial performance reports, the $5-million Louden Depot Community Credit Union was a thriving institution, however a $400,000 change in cash reserve was noted, which was a 34% drop from a March 31st report. Community 1st Credit Union of Ottumwa immediately assumed most of Louden Depot Community Credit Union’s members, assets, and loans.
The new members of Community 1st should experience no interruption in service at the current Louden Depot Community Credit Union location during this transition. The 790-member Louden Depot Community was chartered in 1954. There’s no word on any investigation into the financial discrepancies at the institution. The Fairfield Police Department says the matter is being handled by federal authorities.
(Reporting by Steve Smith KMCD, Fairfield)