A credit union which applied for a federal mutual bank charter and then withdrew its application saw its net worth ratio fall to 1.21% in June.
A majority of voting members of Salt Lake City based Beehive Credit Union approved the charter change in 2008, but the credit announced early in 2009 that it was withdrawing the application before the Office of Thrift Supervision. Credit union leaders cited "turmoil" in the economy and "extreme reluctance" on the parts of federal regulators to approve the credit union's charter applications.
The OTS has a policy of not commenting on charter applications, but its generally understood that FDCI approval is necessary for OTS approval and sources close to the process have reported the FDIC has been responsible for blocking credit union charter change applications in the past.
According to NCUA records, Beehive's net worth ratio has slid from 5.91% in June 2009 to 1.21% this past June. The credit union had negative income of over $10.5 million last year and is on track to see negative income of over $3.4 million this year, the agency's records show.
