Kaiperm Federal Credit Union of Oakland, Calif., wracked by large losses in its mortgage portfolio, is negotiating a merger with Alliant Credit Union in Chicago.
In a letter to members, Kaiperm chairman Shirley Jones said, "After extensive research and review to determine how best to improve and enhance the financial lives of our members, our board has decided to pursue a merger with the Alliant Credit Union."
Faced with rising delinquencies and chargeoffs, the $96 million-asset Kaiperm reported a $3.8 million loss for 2007 and a $2.1 million loss for the first quarter of 2008. It has lost 8% of its assets since the end of 2006.
The $5.3 billion-asset Alliant was originally the credit union for United Airlines, but it now has a community charter. It had net income of $19 million for the first quarter.
