ALEXANDRIA, Va. (2/21/12)--A small Philadelphia-based community development credit union was liquidated over the weekend by the National Credit Union Administration (NCUA). Another Philadelphia credit union, TruMark Financial, assumed the members and purchased the loans of the failed People for People Community Development CU.
People for People CDCU is the second federally insured credit union to be liquidated in 2012. The NCUA said it decided to liquidate the 1,600-member, $635,000-asset credit union after determining the credit union was insolvent and had no prospect for restoring viable operations on its own. The credit union served a 14-mile section of North Philadelphia considered to be underserved by financial services.
The Pennsylvania Department of Banking concurred with the decision to liquidate People for People CDCU and with TruMark's purchase and assumption, the NCUA said.
People for People CDCU was taken under NCUA conservatorship earlier this year, and the agency last fall issued a cease and desist order to People for People ordering the credit union to complete a financial statement audit, charge off uncollectible loans, properly fund its 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.
TruMark Financial has $1.35 billion in assets and has 96,134 members. Accounts of the new TruMark Financial CU members are fully insured and the new members will experience no interruption in services.