The National Credit Union Administration (NCUA) has issued a cease and desist order to S M Federal Credit Union of Philadelphia.
Chartered in 1959, S M FCU has assets of $56,005 and serves 115 members, and recent Call Reports show the credit union struggling mightily. It lost $1,435 last year and its September Call Report already shows a loss of just over $2,000 for 2016. The credit union has just seven loans on the books – all lines of credit – totaling a little more than $3,400. It has no non-interest income for the year.
S M FCU officials have consented to the order, which requires that they provide credit union records to a compensated auditor; complete a member account verification and supervisory committee audit; reconcile and maintain accurate financial statements and member share and loan records; calculate and track loan delinquency; actively and effectively collect past due loans; cease granting new loans; ensure the supervisory committee is fully staffed and fulfilling all obligations; and provide the agency with monthly financial statements; and board and committee minutes.
