Regulators assume control of People for People Community Development Credit Union
01/09/2012
On Friday, January 6, the National Credit Union Administration (NCUA) assumed control of
People for People Community Development Credit Union in order to correct the institution's
operational weaknesses. The credit union, with just $1.1 million in assets as of September 30,
2011, was rated E+ ("Very Weak") by Weiss at the time of failure. It reported a loss
of $30,000 for the first nine months of 2011 resulting in capital of just $41,000 by September 30.
It had a net worth ratio of 3.64%, well below the industry average of 10.15% and nonperforming
loans making up 16.57% of its total loan portfolio.
The NCUA assumes control of service and operations of People for People CDCU. Deposits
will remain federally protected by the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000.