The NCUA today issued a Letter of Understanding and Agreementwith the officials of $360 million Sperry Associates Federal CreditUnion of Garden City Park, New York.
The LUA cited the credit unions for declining capital,participation losses, potential unrecognized investment losses,inadequate due diligence, and inadequate testing of high-riskareas. The credit unions' capital declined from 6.22% in March 2009to 5.15% March 2008, according to the financial performance reportfiled with the NCUA. The credit union also had more than $27million in participation loans outstanding, mostly business loans.Participations accounted for over 11% of Sperry Associates' entireloan portfolio.
The credit union is open for business for its approximately8,000 members and deposits are federally insured up to $250,000 peraccount by the NCUSIF.
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