Miss. Regulator Takes Over CU, Dismisses Board, CEO
The president of the Gulfport CBC CU and its board of directors were dismissed and the credit union placed into federal conservatorship while state banking regulators look into alleged mismanagement of funds.
An official with the Mississippi Department of Banking told The Credit Union Journal the conservatorship had nothing to do with the damages incurred from Hurricane Katrina, but confirmed they were looking into possible mismanagement at the $17.5-million institution.
The credit union had strong net worth of 10% at the end of the third quarter but reported a $175,000 loss for the first three quarters of 2005. Its loan delinquency ratio was 4.6% and its charge-off ratio was 3%.
Gulfport CBC CU primarily serves both the civilian and military employees and families of the U.S. Navy's Gulfport Construction Battalion Center.