The National Credit Union Administration on Friday placed Devils Lake, N.D.-based Citizens Community Credit Union into conservatorship, citing “unsafe and unsound practices.”
Citizens Community has assets of more than $201 million but its most recent call report shows losses of nearly $1 million during the first quarter of 2017. It posted a net income of more than $460,000 last year, though that was a precipitous drop from the nearly $1.7 million in net income it earned in 2015.
The credit union has also seen a surge in delinquencies in the past two years, rising from 91 reportable delinquent loans (totaling $1.2 million) at the end of 2015 to 172 delinquent loans (totaling $10.1 million) at the end of 2016. Its most current call report lists 117 delinquent loans for a total of more than $10.8 million. Many of its current delinquencies are tied up in member business loans.
This was NCUA’s second conservatorship in days, following a move with the Alabama regulator to
Member deposits at Citizens Community CU are insured up to $250,000, and IRA and KEOGH retirement accounts are also insured up to $250,000. Member services will remain uninterrupted and NCUA has pledged to work with the credit union to resolve the issues affecting operations at the credit union.
