NCUA Issues Cease & Desist Against Montgomery County Teachers FCU
The order requires the credit union to comply with regulatory and supervisory requirements pursuant to Prompt Corrective Action; ensure the financial statement audit is completed and all accounts are reconciled by May 31, 2012; and address operational deficiencies and strengthen internal controls.
The NCUA said officials of the 59,000-member credit union have agreed to the terms of the order.
Montgomery County Teachers signed a letter of intent April 12 to merge with the $367 million Educational Systems FCU of Greenbelt, Md.
MCTFCU posted a nearly $740,000 loss in 2011, and has been below 5% net worth since June 2010, when it slipped to 4.13%. The credit union has not been considered well capitalized since December 2008.
Neither Educational Systems President/CEO Chris Conway nor Montgomery County Teachers President/CEO Thom Beck answered calls requesting comment by press time.
NCUA enforcement orders are available for review online.