NCUA liquidates second credit union of 2022

The National Credit Union Administration has shut down Paducah Teachers Federal Credit Union in Paducah, Kentucky, the second such closing this year.

The NCUA put the $12.1 million-asset credit union into involuntary liquidation on Friday after finding it was insolvent and had no prospect for restoring viable operations to its 1,187 members, the agency said in a press release.

Paducah Teachers offered services for active and retired employees of the Paducah Board of Education, as well as credit union staff members and their immediate families. It recorded a loss of $2,164,012 for the first six months of this year, after reporting a loss of $63,958 in 2021.

The neighboring C-Plant Federal Credit Union in Paducah, Kentucky, purchased a portion of Paducah Teachers' assets and assumed most of the defunct credit union's share accounts. C-Plant has roughly $279 million of assets and more than 15,700 members.

C-Plant reported net income of $839,355 for the first six months of this year, versus $964,846 a year earlier.

The NCUA shuttered Empire Financial Federal Credit Union in New York earlier this year and recorded four liquidations in 2021: Portsmouth Schools Federal Credit Union in Portsmouth, Virginia, 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.