The fire sale of Tooele County’s largest credit union appears to be helping, rather than hurting, the company’s business initially.

In the three weeks since HeritageWest Credit Union was bought by Virginia-based Chartway Credit Union on Dec. 31, HeritageWest has added 52 new members while only three members have closed accounts, according to Ronald Burniske, president and CEO of Chartway.

“That number of new accounts actually represents business as usual for us at HeritageWest,” said Bruce Bryan, former CEO of HeritageWest and now regional president of operations for HeritageWest. “I think it shows that after the change people still have confidence in us.”

Burniske, who visited Tooele on Wednesday for the first time since the takeover, said HeritageWest has already made several adjustments to improve the business. For example, under restrictions imposed by the National Credit Union Administration, HeritageWest was required to demand high credit ratings and large down payments for car loan applicants.

“Those restrictions have been lifted. It will be more business as usual at HeritageWest from here on out,” Burniske said. “In issuing a loan, our main concern is can they pay us and will they pay us, as opposed to a specific credit rating.”

“We are already back in the dealer business with car loans,” Burniske said. “We plan on a complete financial turnaround in the next six months.”

Burniske said the plan for HeritageWest is still to have the credit union keep its name and logo, with Bryan remaining at the helm.

HeritageWest fell into the same lending practices that have hurt small credit unions throughout the country, Burniske said.

“As the economy was doing well and with home prices rising, they forgot their roots of basic service to members and started making commercial and construction loans,” Burniske said. “When the economy changed, they did not have sufficient capital to weather the storm.”

HeritageWest was faced with a $15 million loss and $30 million in delinquent loans through the first six months of this year.

“Chartway has enough capital to buffer those losses,” Burniske said. “And the potential of HeritageWest makes it a worthwhile investment.”

Under ordinary conditions, a merger of two credit unions would involve a vote of the members. However, the National Credit Union Administration approved this deal without a vote because members were not incurring a financial loss and the credit union’s capital was being strengthened considerably, Burniske said.

HeritageWest will continue to offer Small Business Administration loans and will eventually get back into the commercial loan market, Burniske said.

“We really want to get aggressive about offering the services of a credit union to more members in both Tooele and Salt Lake County,” Burniske said.

Chartway currently operates credit unions in 10 different regions, Burniske said.

“Bruce [Bryan] will run this region,” Burniske said. “Decisions about loans will continue to be made by the loan officers locally.”

Members of HeritageWest Credit Union are now members of Chartway Credit Union and will vote annually for the Chartway board of directors. HeritageWest’s former board of directors has been disbanded, according to Burniske. “Members from Tooele are certainly welcome to run for the Chartway board,” Burniske said.

Burniske said the credit union’s members can expect an increase in products and more competitive rates in the months ahead.

“Most of the rates we offer at Chartway are currently better than what HeritageWest was able to offer,” Burniske said. “As we look at the market, if we can afford to pay the better rates out here we will.”

Burniske said he wants to keep the local members of HeritageWest the old-fashioned way.

“Give us the chance to earn your business with outstanding service and good products,” Burniske said.

Tim Gillie: tgillie@tooeletranscript.com