The $201 million Citizens Community Credit Union in Devils Lake, N.D., which posted a net income loss of more than $900,000 at the end of the first quarter, was conserved Friday, the NCUA said.
The credit union was placed into conservatorship for safety and soundness issues that the federal agency did not specify in its prepared statement.
Although CCCU had a net worth of 9.93% at the end of the first quarter, its delinquency loan rate was 6.79%, well above the peer average of 0.77%. At the end of 2016, its delinquency loan rate was 6.19%, but from 2012 to 2015, the credit union posted a delinquency loan rate of less than 1%, according to NCUA financial performance reports.
Over the last five years, CCCU’s net income has been declining.
In 2012, the credit union posted a net income of $3.3 million, which dropped to $2 million in 2013 and then fell to $1.6 million in 2014 and 2015. By the end of 2016, CCCU’s net income plummeted to $460,184, and by March 31, it posted a net income loss of $933,194, according to NCUA financial performance reports
The credit union’s ROAA was -1.87% compared to the peer average of 0.49%, at the end of the first quarter. In March 2016, CCCU posted an ROAA of 1.15%, NCUA financial performance reports show.
CCCU, the sixth largest credit union in North Dakota by assets, manages 7,198 loans worth $159 million. The credit union employs 58 full time staffers and 14 part-time staffers who serve more than 11,000 members and operate 10 branches.
The credit union’s former president/CEO Darwin Brokke was paid $277,520 in 2015, according to CCCU’s latest publicly available 990 Form it filed with the IRS.
His base compensation was $152,423 and $45,760 in bonuses/incentives and $3,976 in other reportable compensation. Brokke also received $60,108 in retirement and deferred compensation and $15,253 in nontaxable benefits, according to the credit union’s 990 Form.
CCCU’s 2016 IRS 990 form is not publicly available yet.
