So far 2010 has been very quiet with respect to Credit Union takeovers by the NCUA. That trend is now changing and expected to accelerate.
Arrowhead Credit Union is the second largest credit union taken over by regulators. With $876 million in assets, Arrowhead had 24 branches in California and 152,000 members. P. Kay Woods a consultant that was recently working with NCUA and Memphis Area Teachers Credit Union was brought in as interim CEO. P. Kay Woods brought in an addition five consultants to help manage Arrowhead Credit Union.
NCUA liquidated Southwest Community Federal Credit Union of Saint George, Utah on June 30, 2010. Immediately following the liquidation of Southwest Community Federal Credit Union, NCUA entered into an agreement with Chartway Federal Credit Union of Virginia Beach, Virginia, to purchase and assume certain assets and liabilities of Southwest Community Federal Credit Union. At the time of liquidation, Southwest Community Federal Credit Union had approximately $139,094,182 in assets and served 19,041 members.
This is the 10th federally insured credit union liquidation in 2010 vs 87 banks which have been liquidated.
Member accounts remain federally insured by the National Credit Union Share Insurance Fund (NCUSIF) up to at least $250,000.