Virginia's Chartway FCU Picks Up Failed Utah CU
ST. GEORGE, Utah-NCUA last week liquidated the one-time $175 million Southwest Community FCU here, and assigned it to Chartway FCU, the Virginia Beach-based credit union giant that has been expanding its footprint across the country.
Southwest Community is the second Utah-based credit union failure acquired by the $1.6-billion Chartway, following last fall's acquisition of HeritageWest FCU, the one-time $320 million Tooele, Utah, institution.
Southwest Community reported losses of $5.1 million for 2008 and $6.6 million for 2009, and a loss of $700,000 for the first quarter of 2010, as net worth declined to just 3.2%.
Chartway has 55 branches in Arkansas, Florida, Georgia, New Jersey, North Carolina, Ohio, Rhode Island, Texas, Utah, and Virginia.
Southwest Community is the 16th credit union failure so far this year.
Cheney Officially Takes Reins As Mica Retires
WASHINGTON-Last Friday was Dan Mica's official last day of work as CUNA president, and following the national holiday, Bill Cheney officially takes over at the trade association.
Insisting that he is riding off not into the sunset but into the sunrise-and off to new beginnings-Mica recalled for Credit Union Journal some of his best and worst moments as a credit union advocate. Those memories, plus what's next for Mica, will be featured in next week's edition of CU Journal.
Despite having worked his final day as CUNA president, Mica will be on hand for the 1 CU Conference coming up in Las Vegas next week.
State Central CU Issues 9% Bonus
MADISON, Wis.-The 8,600 members of the former State Central CU got a pleasant surprise last week-a dividend of at least 9% on their shares.
The bonus is being paid out as the result of a merger with Summit Credit Union, which was completed last week.
As part of the merger agreement, some $5.2-million is being paid to members based on balances as of Oct. 31, 2009.
According to the credit unions, some members were paid dividends in excess of $10,000 as part of an effort to recognize "member-owners." The merger boosted Summit's assets to $1.5-billion.
Suit Filed Against CUMIS
SALT LAKE CITY-Cyprus FCU is asking a federal court to enforce its bond with CUMIS Insurance Society which it believes entitles the credit union to reimbursement of $450,000 from employee malfeasance.
The credit union said the loss was the result of four employees ignoring its policy, which enabled a local businessman to kite checks between accounts. CFCU in its suit, filed in U.S. District Court for the District of Utah, said its policy requires checks payable to non-natural persons be taken for deposit only to an account with the same owner as the payee of the check.
The suit claims that CUMIS, a unit of CUNA Mutual Group, has failed to investigate or pay its claim.
CUMIS declined comment. An attorney for Cyprus FCU did not return a phone call seeking comment.
Storm Knocks Out Card Access
TUSCALOOSA, Ala.-Many ATM and debit cards issued by DCH Credit Union were declined at retailers over a weekend, but the problem was resolved by the following Monday.
The problem arose after a power failure during strong storms in the Tuscaloosa area, according to the credit union.
Former Rep Is Sentenced
PANAMA CITY, Fla.-A former financial representative for Tyndall FCU was sentenced to 30 months in federal prison for embezzling almost $160,000 from the credit union.
Kelawanoia McKay, 34, pled guilty to bank fraud on March 17. He was charged with stealing the funds between July 1, 2008 to July 13, 2009. McKay also was ordered to serve a term of five years' supervised release upon her release from custody and to pay $157,713.38 in restitution.