Beehive Is Latest Utah Failure Gobbled Up By Out-Of-State CU Giant
SALT LAKE CITY – NCUA and state regulators yesterday shuttered Beehive CU and assigned
the assets of the one-time $200 million credit union failure to Security Service FCU, the $6 billion San Antonio-based credit union, the latest Utah failure to be go to an out-of-state credit union.
Beehive had been operating with negative capital since at least Sept. 30, when it reported a $5.8 million loss for the first three quarters of the year and the elimination of all of its net worth.
Beehive follows last year’s failures of Southwest Community FCU and HeritageWest FCU, both acquired by Virginia’s Charway FCU, and the federal takeover of Family First FCU, a one-time $175 million Orem credit union.
Security Service is among a handful of well-capitalized large credit unions that are entering new markets by acquiring failed credit unions, having acquired Colorado’s Norbel Community CU earlier this year, and Horizon CU in Texas in 2008.
Beehive had applied in 2007 to convert to a mutual savings bank but banking regulators rejected its application as the credit union's losses continued to mount.