NCUA retains 1st pick CU Atlanta

The NCUA on Friday retained a small Atlanta credit union that posted a first-quarter loss.

An NCUA press release Friday evening said it retained 1st Choice Credit Union ($38.6 million in assets, 6,709 members as of March 31) in consultation with the Department of Banking and Finance of Georgia. The press release does not explain why this action was taken.

Call reports showed 1st Choice’s first-quarter losses widened from $32,816, or a -0.33% return on average assets in 2023, to $149,436 (-1. 52% ROA) in the first quarter of 2024. For the full year 2023, it earned $108,878 (0.28% ROA), down from $616,805 (1.65% ROA). ROA) in 2022.

Its net worth ratio stood at 8.50% as of March 31, within the NCUA range for a “well-capitalized” credit union. The ratio increased from 8.65% on December 31 to 9.04% at the end of 2022.

The press release states that 1st Choice serves employees of Grady Hospital, Morehouse Medical School, Emory University School of Medicine, Southside Healthcare, Atlanta Life Insurance Company and South Fulton Community Development Corporation.

Dina Hairston, who was president and CEO in late 2023, was replaced by Sheilah Montgomery sometime before filing her final appeal report in May.

Hairston signed a “Memo from the CEO” that was still on his website as of Friday afternoon.

“We are a minority depository institution that prides itself on being a community-oriented organization,” she wrote. “Our vision is to become, within five years, the preferred financial institution of our members and to offer a diversified and member-centric product offering via modern and digital channels, while maintaining our socio-economic and cooperative.