'Red flags' in Devils Lake credit union show $10 million in delinquent loans
DEVILS LAKE, N.D. - Few details on why a federal regulator took over a Devils Lake-based credit union will be released, but financial reports reveal "red flags," including a loss of almost $1 million last quarter and increased delinquent loans.
The National Credit Union Administration has placed Citizens Community Credit Union, with nearly 11,400 members, into conservatorship after discovering "unsafe and unsound practices," according to a news release. The NCUA has removed the credit union's board of directors and senior management as it attempts to resolve those issues.
There is no timeline for the length of the conservatorship, said NCUA spokesman John Fairbanks, who declined to say why the credit union went into conservatorship. Any documents related to the conservatorship, including those that would cite the "unsafe and unsound practices," are "strictly confidential."
A NCUA call report, which shows a credit union's finances, shows a net loss of $933,194 in the first quarter of 2017, far behind last year's net income of $460,185 and 2015's net income of almost $1.7 million.
Read more: http://www.inforum.com/news/business/4290284-red-flags-devils-lake-credit-union-show-10-million-delinquent-loans