The $800,000 Watts United Credit Union was closed and placed into liquidation July 6 by the California Department of Financial Institutions, which had declared it insolvent. The credit union was chartered to serve the residents of Watts in 1966, one year after a series of riots made the Los Angeles neighborhood infamous. The DFI appointed the NCUA as liquidating agent. The NCUA Asset Management and Assistance Center will issue checks to individuals once they have verified share account balances. At the time of liquidation, the credit union served 1,067 members. Loan delinquencies and charge-offs were a factor. The combined charge-off and delinquency ratio was as high as 25% as of June 30, 2008, falling to 16% as of March 31. The credit union offered auto loans, signature loans and share-secured loans. Return on average assets was -7% for the first quarter of 2009. This is the second federally insured credit union to close in 2009, and the first closed this year by the California DFI. –[email protected]

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.