APPLE VALLEY, Calif. – At least three large credit unions, including New Jersey’s Affinity FCU, were in town over the past two weeks to review possible takeovers of High Desert FCU and The Members Own CU, two of the most troubled credit unions in the state.
Representatives of the visiting credit unions kicked the tires at the two troubled credit unions to determine whether it would be practical to acquire one or both, sources said.
Representatives of Affinity, the $1.8 billion Basking Ridge, N.J., credit union, also met with local chambers of commerce to look over the region’s business climate. The Apple Valley Chamber of Commerce hosted a two-hour dinner meeting for the Affinity representatives with local real estate, education and medical professionals and business leaders.
High Desert and The Members Own are the latest in a growing list of troubled mid-sized California credit unions requiring a merger, following recent takeovers of Cal State 9 CU, Sterlent CU, Kaiperm FCU and Golden Bay FCU.
High Desert FCU, a one-time $175 million credit union, is down to $110 million in assets and reported a first quarter loss of $13 million and is currently being run under NCUA conservatorship. The Members Own CU has $90 million and reported a $4.2 million first-quarter loss and has been publicly shopping for a merger mate.
