PHILADELPHIA – NCUA announced Sunday it liquidated People for People Community Development CU and assigned the remnants of the failed $1.3 million credit union to $1.4 billion TruMark Financial CU of Philadelphia.
The so-called purchase and assumption deal is the second credit union failure of the year. Earlier this weekend NCUA took over troubled AM Community CU, a troubled $125 million auto workers credit union in Kenosha, Wis.
NCUA said made the decision to liquidate People for People CDCU and discontinue its operations after determining the credit union was insolvent and has no prospect for restoring viable operations on its own. At the time of liquidation and subsequent purchase by TruMark, the tiny CDCU served approximately 1,600 members and had assets of approximately $635,000.
Chartered in 1999 by the Pennsylvania Department of Banking, People for People Community served an underserved community located in north central Philadelphia.
The Pennsylvania Department of Banking concurred with the decisions to liquidate People for People CDCU and to transfer the former credit union’s members and loans to TruMark Financial.
