OREM, Utah – NCUA said this evening it has taken under conservatorship Family First FCU, a one-time $175 million credit union based here, as Utah has joined the list of Sand States housing troubled credit unions.
Family First reported a $2 million loss for 2008 and a $5.9 million loss for 2009, as net worth slipped below 3% at the end of the first quarter of 2010, even as the credit union reported a $104,000 net. The credit union is not adequately capitalized under standards set forth in the Federal Credit Act, and has earnings insufficient to enable it to continue under present management. The credit union’s problems stemmed from problems in its loan portfolio.
Family First is the latest troubled Utah credit union to require regulatory action, following recent liquidations of HeritageWest FCU last year and Southwest Community FCU and its merger into Virginia credit union giant Chartway FCU earlier this month.
Service to Family First FCU’s 19,00 members will continue uninterrupted, according to NCUA.
