Beehive Credit Union in Salt Lake City, which once had assets of $200 million and unsuccessfully tried to convert to a mutual savings bank, was shut down Wednesday.
The National Credit Union Administration and state regulators assigned the credit union's assets to Security Service Federal Credit Union of San Antonio.
Beehive had been operating with negative capital since at least Sept. 30, when it reported a $5.8 million loss for the first three quarters of 2010 and the elimination of all of its net worth.
Two Utah credit unions that failed last year, Southwest Community Federal Credit Union and HeritageWest Federal Credit Union, were bought by Charway Federal Credit Union in Virginia. The government took over Family First Federal Credit Union of Orem, Utah.
The $6 billion-asset Security Service is among a handful of well-capitalized large credit unions that are entering markets through failures. Security Service acquired Colorado's Norbel Community Credit Union earlier this year and Horizon Credit Union in Texas in 2008.
Beehive applied in 2007 to convert to a mutual savings bank. Banking regulators rejected its application as Beehive's losses mounted.
