Another Utah CU On The Brink

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SALT LAKE CITY – Beehive CU, the erstwhile convert to bank, has come under intense regulatory scrutiny in recent weeks after reporting a $5.8 million loss and the elimination of all of its net worth in the third quarter.

The one-time $200 million credit union, which abandoned a bid to convert to mutual savings bank in 2009 at the pause of bank regulators, reported losses of $1.5 million for 2008 and $10.5 million for 2009, pushing capital into the danger zone. At Sept. 30 Behive had negative net worth of almost $600,000.

Utah has joined California, Nevada, Arizona and Florida and effectively become the fifth troubled “Sand State” over the past two years, with two large credit union failures, Southwest Community FCU and HeritageWest FCU, and most of its largest credit unions moving in and out of the red.

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