Insolvent CDCU Shuttered

WICHITA, Kan. – With no angels in sight, state regulators with the Kansas CU Department took over troubled Communities United CU Friday and said they plans to close the state’s only community development credit union. Officials with the $2.3 million credit union had pleaded with credit union and community groups for weeks for some kind of capital infusion, but to no avail, prompting the conservatorship. State regulators said the 11-year-old credit union has a negative net worth of 2.1% and has lost money for three straight years. NCUA, which will serve as conservator, is shopping around for a merger mate, where it would assign the credit union’s 1,900 accounts. Communities United officials had issued an SOS to the credit union community for some non-member deposits to help stave off bankruptcy, but there were no firm commitments last week. The credit union is known for a variety of community development programs it offers, like Individual Development Accounts, payday loans and financial education.