JUPITER, Florida (May 2, 2011) — On Friday, regulators closed Utah Central Credit Union, Salt Lake City, Utah, bringing the total number of U.S. credit union failures to seven for 2011.
Utah Central Credit Union, Salt Lake City, Utah, with assets of $158.3 million at December 31, 2010 was rated E- (“Very Weak”) at the time of failure based on fourth quarter 2010 data by Weiss Ratings. The institution reported a loss of $575 thousand for the year ended December 31, 2010. With just $4.5 million in capital, Utah Central had a net worth ratio of 2.86%, well below the NCUA mandated level of 7%. Nonperforming loans to core capital represented more than 319%, and it had charge-offs to loans of almost 3%.
Chartway Federal Credit Union located in Virginia Beach, Virginia, with assets of $1.7 billion and a Weiss Rating of C (“Fair”), will assume the deposits and liabilities of Utah Central Credit Union.
Weiss rates 528 credit unions an E+, E, or E-, including Wescom Central Credit Union of Pasadena, California (rated E-), Texans Credit Union of Richardson, Texas (rated E-), and Lake Trust Credit Union in Lansing, Michigan (rated E+). Consumers can view the full list at www.weissratings.com.
Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company financial strength ratings and sovereign debt ratings, accepts no payments for its ratings from rated institutions. It also distributes independent ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs.