Just 10 days after it was publicly revealed that the $28.7million Louisville Metro Police Officers Credit Union was underinvestigation for suspected internal theft, the Louisville, Ky.,cooperative was conserved by the NCUA Friday.

“The NCUA placed Louisville Metro Police Officers Credit Union intoconservatorship to allow the credit union to continue regularoperations with experienced management in place and to correctoperational weaknesses,” the federal agency said in a statement.“While continuing normal member services, the NCUA will work toresolve issues affecting the credit union's safety andsoundness.”

The NCUA did not specify the credit union's operationalweaknesses.

According to third quarter NCUA financial performance reports,LMPOCU is well-capitalized and profitable with a net worth of11.28% and an ROAA of 1.41%.

However, LMPOCU posted a delinquent loan rate of 1.75%, higherthan the peer average of 1.20%. In addition, in 2014, the creditunion posted a delinquent loan rate of 4.46%, while its delinquentloan rate was more than 2% in 2012, 2013 and 2016, according toNCUA financial performance reports.

LMPOCU's operating expense has also been consistently higherthan the peer average of 3.53% from 2012 to the end of this year'sthird quarter. For example, the Kentucky credit union's operatingexpense was more than 4% in 2012, 2013 and 2015. And in 2015, itposted an operating expense of 5.76%.

LMPOCU's former President/CEO Sharon L. Burden received a salaryof $111,745, according to the credit union's 2015 990 Form that itfiled with the IRS.

When contacted by CU Times last week, state and localauthorities acknowledged that an investigation had been launchedregarding suspected internal theft at LMPOCU.

Cole McCollum, an AVP and compliance officer for the creditunion, declined to comment, however. He also would not comment on alocal media report that a vice president at the credit union hadbeen suspended, and that the alleged theft involved a number offake loans that were made in police officers' names.

The Kentucky Department of Financial Institutions said it isconducting an examination of the credit union, and as part of thatprocess, examiners will address the reported theft.

Dwight Mitchell of the LMPD said the department's financialcrimes unit initiated an investigation, but it was handed over tothe FBI.