The impact of the recession on Nevada's already battered economy was again evident on Friday when the NCUA closed Ensign Federal Credit Union and authorized EDS Credit Union to buy its shares and assets.
Ensign's latest financial report, which covers the third quarter, showed a net worth ratio of negative 1.21% and equity of negative $1.1 million.
The 7,900-member Henderson, Nev.-based credit union saw its assets fall by $23.5 million during 2009, from $121.5 million to $98 million. During the third quarter, its loan income declined 3% and its investment income fell 26.7%. According to the report the credit union filed with the NCUA, 13.6% of its loans were delinquent at the end of September, up from 6.27% in September 2008.
Ensign FCU, the fourth credit union to close in Nevada this year because of the recession, was founded in 1961 to serve members of the Church of Jesus Christ of Latter Day Saints. In 2009, 13 federally-insured credit unions have been liquidated.
EDS CU, based in Plano, Texas, has $772 million in assets and approximately 57,000 members.