The NCUA took control of day-to-day operations at the $13.5 million Parsons Pittsburg Credit Union in Parsons, Kan. on Friday, blaming unsafe and unsound practices.
According to its Sept. 30 call reports, Parsons Pittsburg reported a net worth of 9.39%.
The NCUA said in a release the violations were uncovered by The Kansas Department of Credit Unions, which seized the credit union and handed it over to federal officials.
“While continuing normal member services, the Department and NCUA will work to resolve issues affecting the credit union’s safety and soundness. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments and use shares,” the release also said.
Parsons Pittsburg Credit Union, headquartered in Parsons, Kan., also operates a branch in Pittsburg, Kan. The credit union had a membership of 1,470, serving individuals living or working within a 45-mile radius of Labette, Bourbon, Cherokee or Crawford counties in Kansas.
Parsons Pittsburg’s net worth went from 9.21% in September 2012 to 9.39% in September 2013, according to the credit union’s most recent Financial Performance Report. Delinquent loans increased from 2.05% to 2.90% during the same period.