ALEXANDRIA, Va. (2/4/16)--In its first four months operating under conservatorship, New York City-based Montauk CU has taken several steps to address safety and soundness issues, according to the National Credit Union Administration (NCUA).
Per the NCUA, both financial and management issued led to the New York State Department of Financial Services placing Montauk into conservatorship on Sept. 18 and naming NCUA as conservator.
Montauk is a federally insured, state-chartered credit union with assets of $162.1 million and 2,830 members, according to its year-end call report posted today.
As of Dec. 31, Montauk reported a net worth of $2.8 million and a net worth ratio of 1.74%. Total shares and deposits were $158.2 million. The allowance for loan losses increased to $21.9 million from $5.5 million during the quarter, and net loans were $143.8 million at the end of the quarter.
Among other steps taken during the conservatorship, Montauk worked with members, where appropriate, to address identified issues. As a result, the credit union has modified $60.6 million in loans.
The credit union hired experienced loan workout specialists to assist with its collections process. The credit union also retained professional accounting guidance to determine the adequacy of its allowance for loan and lease losses.