Friday, April 29, 2011

Utah Central CU Closed

The Utah Department of Financial Institutions appointed the National Credit Union Administration (NCUA) as the liquidating agent for Utah Central Credit Union of Salt Lake City. Chartway Federal Credit Union of Virginia Beach, Virginia, immediately purchased and assumed Utah Central Credit Union’s assets, liabilities and members.

Utah Central has approximately $157 million in assets at the end of the first quarter of this year. The credit union reported a loss of $3.4 million during the first three months of 2011. It was critically undercapitalized with a net worth ratio of 0.69 percent. The credit union reported that 4.58 percent of its loans were 60 days or more delinquent at the end of the first quarter of 2011.

The Salt Lake Tribune quotes Michael Jones, the chief examiner at the Utah Department of Financial Institutions as saying "Utah Central, along with Beehive Credit Union, were the two [cooperatives] that were having the most difficultly due to the decline in the real estate industry."

This is the seventh credit union to be liquidated in 2011 and the second Utah credit union to be closed this year.

Read the press release.

1 comment:

  1. chartway and utah cu's raises more questions than it answers.
    chartway goes from 1.2 billion to 1.7 billion seemingly from 2 mergers in utah that were laden with bad loans yet chartway dq doesnt change much and their capital is down but not as much as one would think (and at 6.5% theyre now taking in $190 million more).
    is ncua loss sharing?
    purchase and assumption?
    writing a check?
    what is the cost to the ncusif of all these deals?
    i cant find any information like the way fdic does it.



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