Federal regulators assume control of Parsons credit union

Federal regulators have assumed control of a Parsons-based credit union.

A National Credit Union Administration news release said the $13.5 million, two-branch Parsons Pittsburg Credit Union was placed into conservatorship by the Kansas Department of Credit Unions after the close of business on Friday, and the NCUA has taken over its operations.

NCUA said in the release the credit union was placed into conservatorship “because of the recent discovery of unsafe and unsound practices.”

NCUA said it and the Kansas regulator will work to resolve those issues while the credit union continues to operate. It said the credit union’s 1,470 members can continue to conduct normal banking activities at the credit union, and that individual accounts are insured up to $250,000 by the National Credit Union Share Insurance Fund.

NCUA said no decisions have been made about the credit union’s long-term future.