As expected, the NCUA seized a federal credit union Friday and placed into conservatorship the $2 million NCP Community Development Federal Credit Union of Norfolk, Va.
The agency said in a release the decision to conserve a credit union enables the institution to "continue regular operations with expert management in place, correcting previous service and operational weaknesses."
According to Financial Performance Reports posted on the NCUA's website, the 709-member credit union saw its net worth plummet from 13.72% as of year-end 2011 to 7.76% as of June 30, 2012. Then in September, net worth sunk below well capitalized to 4.91%. By year end 2012, only 3.83% net worth remained.
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