Chartway Federal Credit Union in Virginia Beach has expanded in Utah With its acquisition Friday of the failed Utah Central Credit Union.
"This partnership makes tremendous sense for our members and employees," Ron Burniske, the president of the $1.9 billion-asset Chartway, said in a press release Friday.
"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," Burniske said.
Utah Central is the third Utah failure that Chartway, the onetime Norfolk Naval Air Station credit union, has acquired in the past two years. Earlier it acquired the remnants of HeritageWest Federal Credit Union (the former Tooele Depot credit union) and Southwest Community Federal Credit Union, giving the company five branches in Utah.
As with its last two acquisitions, Chartway will continue to run Utah Central as a subsidiary of the Virginia credit union. Brett Blackburn, who was Utah Central's president, will run the subsidiary. Utah Central's name will remain atop its five branches in Salt Lake County, as well as at its single branch in Carbon County.
Utah Central, which had as much as $190 million of assets two years ago, reported losses of $10 million over the past three years as its net worth ratio declined to less than 1% at March 31, while all 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%. With the latest acquisition, Chartway has 73 branches in 10 states, including 12 in Utah.