ALEXANDRIA, Va.—NCUA took over the daily operations of Parsons Pittsburg Credit Union Friday and said it will work with the Kansas Department of Credit Unions to resolve the troubles at the $13.5 million credit union.
The Administrator of the Kansas Department of CUs placed the Parsons, Kan.-based credit union into conservatorship because of the recent discovery of "unsafe and unsound practices," according to a statement released by NCUA.
The Parsons, Kan.-based CU has 1,470 members.
According the credit union's Sept. 13, call report, it posted $19,718 in net income before paying $8,251 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 9.39% ("well capitalized").
In 2012 PPCU had $53,000 in net income after assessments, with a net worth ratio of 9.35%. In 2011 it made $21,866 in net income from operations while paying $32,044 to the Corporate Fund left it with a loss of $10,178.
PPCU was chartered in 1951 and currently serves persons residing or employed within a 45-mile radius of Labette, Bourbon, Cherokee or Crawford counties in Kansas. The credit union also operates a branch in Pittsburg, Kan.
