Virginias Chartway Charts New Way For Another Utah Failure
VIRGINIA BEACH, Va. – Friday’s acquisition of failed Utah Central CU will give Chartway FCU 12 branches and a new foothold in Utah.
“This partnership makes tremendous sense for our members and employees,” said Ron Burniske, president of $1.9 billion Chartway. “Together, we will be able to deliver all the financial services members in this region need and deserve while also providing better-than-market savings and loan rates.”
Utah Central is the third Utah failure acquired in the past two years by Chartway, the one-time Norfolk (Virginia) Naval Air Station credit union. Earlier Chartway acquired the remnants of HeritageWest FCU (the former Tooele Depot credit union) and Southwest Community FCU, giving it five branches in Utah. As with the other two acquisitions, Chartway will continue to run Utah Central as subsidiary of the Virginia credit union which will be run by Brett Blackburn, who was president of Utah Central. The Utah Central name will remain atop its five locations in Salt Lake County, as well as its single branch in Carbon County.
Utah Central, which had as much as $190 million in assets two years ago, had losses of $10 million over the past three years as its net worth ratio declined to less than 1% at March 31, while all of its undivided earnings had been depleted.
Chartway reported net income of $1.8 million for the first quarter and a net worth ratio of 6.1%.
The latest deal will give Chartway 73 branches in 10 states.