The slower economy has claimed the state's first credit union, a Spokane-based outlet that regulators closed Friday, the state Department of Financial Institutions announced.
The Union was shut down because of “loan losses resulting in negative equity,” the department said. The credit union’s federal regulator, the National Credit Union Administration, struck a deal with two other credit unions to assume the failed credit union’s loans and deposits.
Alaska USA Federal Credit Union of Anchorage has acquired certain loans and assets, while Numerica Credit Union of Spokane Valley will handle all deposits and the credit union’s membership.
The National Credit Union Share Insurance Fund insures deposit funds up to $250,000.
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“The failure of The Union – the first credit union closed in Washington state – is a clear example of the consequences these unusually difficult economic times bring to our financial institutions and their members,” DFI Director Scott Jarvis said.
As of Sept. 30, The Union had total assets of $11.83 million and total deposits of $11.81 million. It was formed in 1968 by members of the Bricklayers Local 3 union.