The NCUA has issued a cease-and-desist order against the People for People Community Development Credit Union of Philadelphia, which has had serious financial difficulties recently.
The order requires the $1.1 million credit union to do the following: Complete a financial statement audit; charge off uncollectible loans; properly fund the Allowance for Loan and Lease Losses; collect on delinquent loans guaranteed by a third party; reconcile general ledger accounts monthly; and establish and maintain a Bank Secrecy Act compliance program.
At the end of the third quarter of this year, the credit union's delinquent loan ratio was 16.6%, following 27.8% in the second quarter and 10.7% in the first quarter.
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Its return on average assets was -3.3% at the end of the third quarter, 2.3% at the end of the second quarter and -1.1% at the end of the first quarter.
The 1,561-member credit union's net worth ratio was 3.6% at the end of the third quarter, 6% at the end of the second quarter, and 5.5% at the end of the first quarter.
The full text of the cease-and-desist order is available online.
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