Work-Out Specialist Brought In To Run Failed Utah CU
OREM, Utah – NCUA said it has hired Ken Chapman, a well-known manager of troubled credit unions, to head the conservatorship of Family First FCU, a one-time $173 million credit union taken over on July 30.
As part of the conservatorship, Kent Moore, CEO of Family First for the past year, was removed, NCUA said.
The credit union, founded in 1969 to serve employees of the local Penfield School District, converted to a community charter in 2002. It wracked up a $5.8 million loss for 2009 and a $12 million loss for the first six months of 2010, and had negative net worth of almost $8 million. Financial figures posted yesterday at the NCUA website show the condition of the credit union deteriorated rapidly between the end of the first quarter and mid-year, with $20 million of shares leaving and $11.9 million of second quarter losses wiping out all $4.2 million of net worth and putting the credit union into a $7.8 million hole.
Chapman has been a favored conservator for troubled credit unions the past few years, managing New Horizons Community FCU before the Denver credit union was merged into Security Service FCU, then managing High Desert FCU in Apple Valley, Calif., before that failed institution was acquired by Alaska USA FCU.