State Regulators Take Over MississippiCU

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GULFPORT, Miss. - (01/25/06) -- The president of the Gulfport CBC CUand its board of directors were dismissed Tuesday and the creditunion placed into federal conservatorship while state bankingregulators look into alleged mismanagement of funds. An officialwith the Mississippi Department of Banking told The Credit UnionJournal the conservatorship had nothing to do with the damagesincurred from Hurricane Katrina but confirmed they were lookinginto possible mismanagement at the $17.5 million institution. Thecredit union had strong net worth of 10% at the end of the thirdquarter but reported a $175,000 loss for the first three quartersof 2005. Its loan delinquency ratio was 4.6% and its charge-offratio was 3%. Gulfport CBC CU primarily serves both the civilianand military employees and families of the U.S. Navy’sGulfport Construction Battalion Center.

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