Banking

NCUA liquidates Defense Logistics Federal Credit Union

The National Credit Union Administration liquidated Defense Logistics Federal Credit Union in Dover, New Jersey.

It’s the second credit union to be closed by the regulator this year. Three other institutions have been placed into conservatorship.

Pentagon Federal Credit Union immediately assumed Defence Logistics FCU’s assets, member shares and loans, which remain protected by the National Credit Union Share Insurance Fund.

No interruption in member services is expected.

A Thursday press release from the agency said the decision to liquidate the credit union and discontinue operations was made after determining the credit union engaged in unsafe and unsound practices.

Defense Logistics FCU lost roughly $2,400 in the first quarter, after losing about $5,000 a year earlier, according to call report data from the NCUA.

The credit union had assets of approximately $506,000 at the time of its liquidation and served 219 members, primarily civilian and military personnel of the Defense Contract Administration Services District-Newark and the Defense Contract Audit Agency of Northern New Jersey.

Pentagon FCU, the nation’s third-largest credit union, held assets of more than $27 billion prior to absorbing Defense Logistics FCU.



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