SAN BERNARDINO, Calif.-Fast-growing Alaska USA FCU, which entered the California market with last year's acquisition of two failed credit unions near here, has finalized an agreement with Arrowhead Central CU to acquire five of its branches, four in the High Desert and one in Big Bear region.
The deal, valued at $7 million, satisfies both credit unions' needs as the $4 billion Alaska giant is in an expansion mode and $900 million Arrowhead is contracting in the face of big losses each of the past two years.
Arrowhead said it expects the transactions to increase its net worth ratio from an "undercapitalized" level of 3.44% at year-end 2009 to more than 4.20%.
Alaska USA officials said this week the credit union is looking to expand its California operations after last year's deals for High Desert FCU and The Members Own CU. "We're looking at what we can do to grow our footprint in the High Desert region," SVP Don McCue told Credit Union Journal.
The two acquisitions gave Alaska's largest credit union, which also operates service centers in Washington state, a major presence in the region, located east of Los Angeles. Last month the Anchorage-based credit union opened its first new branch in the region, in the community of Apple Valley.
Arrowhead, weighed down by losses of $29 million in 2008 and $45 million last year, has been trimming its operations recently with sale of an insurance CUSO and the closure of four branches last month.
Alaska USA reported net income of $22.4 million for 2009, even after a $5 million charge for the corporate credit union bailout.
