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Credit Union Place into Conservatorship

July 30, 2010 Alexandria, Va. – The National Credit Union Administration (NCUA)
today assumed control of operations at Family First Federal Credit Union of Orem, Utah.
NCUA’s goal is to continue credit union service to the members and ensure safe and
sound credit union operations.
Service to Family First Federal Credit Union’s 19,476 members will continue
uninterrupted. Members can conduct normal financial transactions – deposit and access
funds, make loan payments and use share drafts. Family First Federal Credit Union is a
full service credit union, with assets of $139.5 million, that provides financial service to
people residing in Utah County, Utah.
Family First Federal Credit Union was placed into conservatorship due to declining
financial condition. The credit union is not adequately capitalized under standards set
forth in the Federal Credit Act, and has earnings insufficient to enable it to continue
under present management. The credit union’s problems stemmed from problems in its
loan portfolio.
The decision to conserve a credit union enables the institution to continue normal
operations with expert management in place correcting previous service and operational
weaknesses.
Member deposits are safe. Their accounts are insured up to at least $250,000 by the
National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by
NCUA and backed by the full faith and credit of the U.S. Government.
The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator
when necessary to conserve the assets of a federally insured credit union, protect
members’ interests or protect the NCUSIF.
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
www.ncua.gov
Media Contact: NCUA Office of
Public & Congressional Affairs
Phone: (703) 518-6330
Email: pacamail@ncua.gov
The National Credit Union Administration (NCUA) is the independent federal agency
that charters and supervises federal credit unions. NCUA, backed by the full faith and
credit of the U.S. government, operates the National Credit Union Share Insurance Fund
insuring the deposits of nearly 90 million account holders in all federal credit unions and
the vast majority of state-chartered credit unions. NCUA is funded by credit unions, not
tax dollars.

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