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State Banking Department Announces Closing of
West Hartford Credit Union

December 5, 2008

State Banking Commissioner Howard F. Pitkin today declared that the financial condition of The West Hartford Credit Union, located in Farmington, Connecticut, would be unsafe and unsound for it to continue its operations, and he petitioned the Superior Court for the Judicial District of Hartford County to name the National Credit Union Administration (NCUA) as receiver.

The Connecticut Department of Banking assumed control of West Hartford Credit Union, Inc. and appointed NCUA receiver after determining the credit union had inadequate capital and was experiencing significant loan losses and elevated risk due to poor credit administration practices and recordkeeping.

“We are saddened by this development related to the West Hartford Credit Union,” commented Commissioner Pitkin. “But my primary responsibility is the protection of Connecticut consumers.  Therefore, we were forced to close the doors of this institution.”

At the time of liquidation, the credit union had $2.9 million in assets and served 1,206 members.  The credit union began operations in 1950, and served Litchfield, Hartford, Middlesex, and New Haven Counties in Connecticut.

Depositors should also be aware that their accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts.  NCUA will issue checks to members holding verified share accounts in the credit union within one week.