Citing losses caused by loan losses, Washington Department of Financial Institutions closed The Union Credit Union of Spokane and appointed the NCUA as liquidating agent.
The state agency approached 18 other credit unions in the state and couldn't find a merger partner, the agency's top credit union regulator Linda Jekel told The Seattle Times.
Therefore, it made deals for Spokane-based Numerica Credit Union to take its members and their deposit accounts and for Alaska USA FCU to assume some assets and liabilities.
Those actions followed a series of events that started in April 2009 when credit union executives officials signed a consent order with the Department of Financial Institutions that require a capital restoration plan. At that time, its capital ratio was 3.28%.
The Union Credit Union, a one-branch operation with approximately 3,000 members, had $11.8 million in assets as of Sept. 30, compared with $12.2 million at the end of June.
Its net worth ratio was negative 0.35% at the end of September, compared with 1.14% at the end of June. Its loan delinquency ratio was 6.78% as of Sept. 30, compared with 5.95% as of June 30.
Its return on average assets was negative 4.68% as of Sept. 30, compared with negative 4.28%.as of June 30.
It was the 17th federally insured credit union to be closed this year and the first credit union in Washington State closed since 1995. The credit union was chartered in 1968 by a local affiliate of a bricklayers union.