Chartway Acquires Another Utah CU Failure
SALT LAKE CITY – Virginia’s Chartway FCU continued to carve out a major footprint here last night when NCUA liquidated Utah Central CU and assigned the remnants of the one-time $190 million failure to the Virginia Beach credit union giant.
Utah Central is the latest of a handful of large Utah credit unions to fail and be acquired by out-of-state credit unions, including HeritageWest FCU and Southwest Community FCU, which were also gobbled up by the $1.8 billion Chartway.
Two other large Utah failures, Beehive CU and Family First FCU, were acquired the past two years by Security First FCU of Texas.
Utah Central had a loss of $3.4 million for the first quarter of 2011 and net worth of less than 1%. The deal gives Chartway another seven branches in the Salt Lake area.
Utah Central was established in 1940 to serve employees, directors and committee members of other credit unions in Utah, the credit union had approximately $157 million in assets and served 22,000 members at the time of closure.
This is the seventh federally insured credit union liquidation in 2011.