SACRAMENTO, Calif. – The Golden 1 CU said last week that NCUA had helped it acquire ailing 1st United FCU, one of several troubled credit unions seeking merger mates.
The 38-year-old 1st United, which is based in San Jose, had a $2.1 million loss for the first half of the year on just $17.8 million in assets, and has reported losses for six straight quarters.
Another troubled credit union, $9 million Free State CU, of Lawrence, Kan., which emerged from conservatorship a year ago, has agreed to merge with the Credit Union of Johnston County. Free State, which is the product of a three-way 2005 merger, had a $482,000 loss for the first half of 2008.
NCUA reported several other credit unions are being merged because of losses. They are: Dresser Bradford FCU, Bradford, Penn. (acquired by Mountain Laurel FCU, St. Mary’s Penn.); Alician CU, Upper Darby, Penn. (merged into Servco FCU, Feasterville, Penn.); Northern Pittsburgh Telephone Employees FCU, Gibsonia, Penn. (acquired by USX FCU, Cranberry, Penn.); Jax Glidco Employees FCU, Jacksonville, Fla. (merged into Metro North CU, Jacksonville); Davenport Fire Department CU, Davenport, Iowa (acquired by The Family FCU, Davenport); Modine Employees CU, Racine, Wis. (merged into Southern Lakes CU, Kenosha, Wis.) and El Cap FCU, Hutchinson, Kan. (acquired by Kansas Super Chief FCU, Topeka).
