HARTFORD, Conn. – State regulators on Wednesday issued a supervisory agreement directing The Greater Norwalk Area CU to resolve a big loan delinquency problem and to build its dwindling capital.
The consent order issued by the Department of Banking requires the one-time $30 million credit union to retain qualified management and create a supervisory committee. It also requires the Norwalk credit union to take affirmative steps to address high loan delinquencies and charge-offs and to develop a net worth restoration plan.
The supervisory order bars the credit union from declaring or paying any cash dividends without approval from state regulators and NCUA.
The credit union is late filing its mid-year financial report, but it reported a $495,000 loss for 2009 and a loss of $370,000 for 2010, while assets had declined to $22.6 million at March 31.
