Chartway FCU Purchases Southwest Community Assets
The NCUA yesterday liquidated the $139 million Southwest Community FCU of St. George Utah after the credit union failed to improve its financial position in several quarters. The $1.6 billion Chartway FCU, headquartered in Virginia Beach, Virginia, would purchase its assets and liabilities, the agency said.
As of March 30, Southwest Community's net worth ratio was 3.18%, down from 3.70% as of December 31.
Its delinquent loan ratio was 6.33% at the end of the first quarter, following a 7.03% ratio at the end of last year.
It has had a negative return on average assets during the last five quarters, most recently -2% at the end of March.
Southwest Community FCU, which was founded in 1937 and served 19,041 members, is the 10th credit union that the NCUA has liquidated this year. Chartway has191,000 members and 55 branches in nine states.