The state Department of Banking has declared West Hartford Credit Union of Farmington too “unsafe and unsound to continue its operations,” and petitioned the state to name the National Credit Union Administration (NCUA) as its receiver.

The department assumed control of the 58-year-old credit union and appointed the NCUA receiver after determining the credit union “had inadequate capital and was experiencing significant loan losses and elevated risk due to poor credit administration practices and recordkeeping,” according to a statement.

At the time of liquidation, the credit union had $2.9 million in assets and served 1,206 members. The credit union began operations in 1950, and served Litchfield, Hartford, Middlesex and New Haven counties.

“We are saddened by this development related to the West Hartford Credit Union,” said State Banking Commissioner Howard F. Pitkin. “But my primary responsibility is the protection of Connecticut consumers. Therefore, we were forced to close the doors of this institution.”

The state said all depositors should be aware that their accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts. NCUA will issue checks to members holding verified share accounts in the credit union within one week.