Southwest Community FCU Closed

The National Credit Union Administration liquidated Southwest Community Federal Credit Union of Saint George, Utah on June 30, 2010.

NCUA entered into an agreement with Chartway Federal Credit Union of Virginia Beach, Virginia, to purchase and assume certain assets and liabilities of Southwest Community Federal Credit Union. At the time of liquidation, Southwest Community Federal Credit Union had approximately $139,094,182 in assets and served 19,041 members.

According to its March 2010 financials, Southwest Community FCU was significantly undercapitalized with a net worth ratio of 3.18 percent. The credit union reported a loss of almost $700,000 during the first quarter after posting a loss of $6.6 million for 2009.

Southwest Community had a net charge-off rate of almost 4 percent for the first quarter and reported that 6.33 percent of its loans were 60 days or more delinquent. Roughly 90 percent of the credit union's delinquent loans were associated with first mortgages. The delinquency rate on the credit union's member business loan portfolio was 9.06 percent.

Southwest Community at the end of the first quarter reported holding slightly more than $6 million in foreclosed and repossessed assets.

NCUA did not disclose the cost of this failure to the NCUSIF.