Wednesday, February 16, 2011

NCUA Closes Family First

The National Credit Union Administration (NCUA) placed Family First Federal Credit Union of Orem, Utah, into liquidation and Security Service Federal Credit Union of San Antonio, Texas, purchased and assumed Family First’s assets, liabilities and members. The credit union has been under NCUA conservatorship since July 30, 2010.

At closure, Family First had approximately $119 million in assets, net worth of -$12.5 million and served 18,000 members. The credit union has been insolvent since June of 2010, when it reported a net worth ratio of -5.55 percent. At the end of 2010, the credit union's net worth ratio was -10.49 percent.

The credit union reported a loss of almost $16.8 million for 2010 after reporting a loss of $5.8 million for 2009.

Interestingly, uninsured shares at the credit union were almost $6.5 million as of June 2010. By the end of 2010, almost all uninsured deposits had been run-off.

This is the fourth Utah credit union to be liquidated since the end of 2009 with Beehive being the last Utah credit union to be closed on December 14, 2010.

Read the press release.

No comments:

Post a Comment