ALEXANDRIA, Va. – NCUA continues to look to the nation’s largest credit unions to resolve the growing number of troubled institutions, approving several more mergers into credit union giants, the agency reported Friday.
NuVision FCU, in Huntington Beach, Calif., which was cleared just last month to acquire nearby E1 Financial CU in an emergency merger to create a $1.2 billion institution, was approved to acquire Costa Mesa FCU because of its “poor financial condition,” said NCUA.
Landmark CU, the $1.3 billion New Berlin, Wis., credit union that acquired two credit unions in recent months, was approved to acquire two more troubled institutions, First Security FCU and Allco CU.
SchoolsFirst FCU, the $8 billion Santa Ana, Calif., institution, was cleared to acquire Riverside-based Service Plus FCU, an $84 million credit union “in poor financial condition,” according to NCUA.
The merger of troubled credit unions is a preferred by NCUA over their liquidation because it provides continued service to members, according to NCUA Board member Michael Fryzel. “Our philosophy on troubled credit unions is we try to make sure the service to members continues,” Fryzel told The Credit Union Journal. “We may lose a credit union, but the surviving institutions is stronger.” These mergers also lower the exposure to the National CU Share Insurance Fund on potential losses by the troubled credit unions, he added.
NCUA also said Friday it approved Georgia’s Own CU, the $1.4 billion Atlanta credit union, to acquire $59 million GPC CU, which has reported growing losses of $445,000 this year, partially due to costs related to the corporate credit union bailout.
Associated CU, the $1.1 billion Norcross, Ga., institution, was approved to acquire CSRA FCU, a $53 million Augusta, Ga., credit union that reported a $520,000 loss for 2008 and a $195,000 loss for the first quarter of 2009.
Credit Union of Johnson County, the $230 million Lenexa, Kan., institution, was approved to acquire two small credit unions reported in “poor financial condition,” Kansas City-based Faith Financial FCU and Leavenworth Teachers & Community CU.
NCUA also approved the emergency merger of Mount Sinai FCU, an $18 million Miami credit union, into $62 million Miami-based People’s FCU.
