Federally Insured CUs Struggling in Utah
While it may not be considered an official "sand state," Utah's federally insured credit unions appear to be in worse shape than their southern neighbors.
In fact, the $140 million Southwest Community FCU, liquidated July 1, had more capital than four other Utah credit unions of roughly the same asset size. According to the NCUA call reports, the $121 million Transwest CU reported only 2.12% net worth as of March 31, the $157 Beehive CU only 2.14% net worth, and the $174 million Utah Central CU claimed 3.06% net worth. Further south in Orem, the $159 million Family First FCU reported only 2.72% net worth remaining.
In other sand states, the $635 million USA FCU has joined the ranks of the significantly undercapitalized; the San Diego-based institution reported just 3.84% net worth as of March 31. Less of a threat to the share insurance fund is the tiny $7 million Mission San Francisco FCU, with only 2% capital.
In Arizona, the $373 million A.E.A. FCU reported 2.74% net worth as of March 31. The Yuma-based credit union experienced a dramatic capital decline in December 2009, falling from 8.22% net worth as of Sept. 30, 2009, to only 2.94% as of March 31.
The $1.4 billion Arizona Federal Credit Union is recovering from a doomsday 1.95% net worth in March 2009 to 3.84% one year later.
In Nevada, all federally insured credit unions reported 5% net worth or more.