Parsons Pittsburg CU Liquidated; Golden Plains Assumes Members

ALEXANDRIA, Va.—The Kansas Department of Credit Unions liquidated Parsons Pittsburg CU Friday, two months after placing the $13.4 million credit union in conservatorship.

As the liquidating agent, NCUA worked with $418.5 million Golden Plains CU, Garden City, Kan., which has assumed Parsons Pittsburg's members, assets, shares and loans.

NCUA took over the daily operations of Parsons Pittsburg Credit Union in January, working with the Kansas Department of CUs, in an attempt to resolve the troubles at the institution.

At the time, the administrator of the department said the credit union was placed into conservatorship because of the recent discovery of "unsafe and unsound practices," according to a statement released by NCUA.

This is the third liquidation of a credit union this year.

Chartered in 1951, Parsons Pittsburg had 1,466 members and still had a net worth ratio of 9.49% and net income of $24,864, according to its December 2013 call report. But on its risk-based network worksheet, it came in at 5.93%.

In 2012 PPCU had $53,000 in net income, 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.