NCUA liquidates small Virginia credit union

Federal regulators have liquidated Portsmouth Schools Federal Credit Union in Portsmouth, Virginia.

The $2.2 million-asset PSFCU was placed into involuntary liquidation by the regulator on Dec. 30, the National Credit Union Administration said in a press release, though it did not disclose reasons for the liquidation. PSFCU recorded net losses for the last several years, with recent call data from the NCUA showing losses that exceeded $200,000 in the first nine months of 2021.

As part of the liquidation of PSFCU, the $2.2 billion-asset Newport News Shipbuilding Employees Credit Union in Newport News, Virginia, which does business as BayPort Credit Union, assumed PSFCU’s assets, member shares and loans. BayPort does not expect interruptions in services for the incoming members.

At the time of its dissolution, PSFCU had approximately 870 members who were teachers, employees, students and family members within the local public school system.

Before its purchase of PSFCU, BayPort held approximately $2.2 billion of assets and served more than 147,000 members.

The NCUA closed four credit unions in 2021, including Newspapers Federal Credit Union in Indianapolis, Defense Logistics Federal Credit Union in Dover, New Jersey, and Community Owned Federal Credit Union in Charleston, South Carolina.