Troubled Richmond credit union acquired
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Richmond City Employees Federal Credit Union, which was placed in conservatorship late last year, is under new ownership. The credit union has merged with and into Ohio-based Kemba Credit Union, though financial details were not disclosed.
In December, the National Credit Union Administration placed Richmond City into conservatorship in response to what it called “unsafe and unsound practices at the credit union.” Specific details on the alleged practices were not detailed.
The merger with Kemba Credit Union went into effect April 1.
“The NCUA worked to address issues affecting the credit union’s safety and soundness and determined that merging Richmond City Employees Federal Credit Union into Kemba Credit Union was in the best interests of the members,” the administration said in a news release on Monday.
The NCUA said the new Kemba Credit Union members should not experience any interruptions in services, and all member deposits remain protected by the National Credit Union Share Insurance Fund.
Members can continue to receive services at the former Richmond City Employees Federal Credit Union location at 50 North 5th Street in Richmond, which will be rebranded under the Kemba name.
The NCUA said at the time of the merger, Richmond City had 788 members and assets of nearly $7 million. Kemba Credit Union had more than 125,000 members and assets of $1.6 billion.