Navy Fed Lands In New Overseas Ports With Deal For USA FCU
VIENNA, Va. – With Navy FCU’s agreement to merge with San Diego’s USA FCU, the world’s largest credit union will acquire 19 new branches, 11 of them overseas, in the biggest credit union deal yet for international branches.
Under the deal, all of the one-time $710 million credit union’s branches, eight in Southern California and 11 at military bases in Japan and Korea, will become part of Navy Fed’s network of branches – which numbered 185 before the merger.
“This is important for us because it strengthens our presence in Southern California and expands our branch access for members – here and overseas,” Cutler Dawson, president of the $43 billion credit union giant, said of the deal for USA FCU.
“We are excited about this merger and know that Navy Federal is an excellent choice for us,” said Mary Cunningham, CEO of USA Fed. “We share the same commitment of service to our members – the men and women in uniform who serve our country and the San Diego community.”
All USA Fed employees will be invited to join Navy Fed’s team, and the USA Fed San Diego headquarters building will become Navy Fed’s West Coast operations center. Members will be notified of merger and will have access to additional information posted on Navy Federal and USA Fed websites and in branch offices.
The date the newly combined credit union will begin joint operations under the Navy Federal banner is projected to be Oct. 1, pending regulatory approval by NCUA.
USA Fed, chartered in 1953 to serve employees at the Naval Training Center here, has been hard hit by the region real estate bust and put itself on auction over the past month. The credit union reported losses of $11.1 million in 2008, of $16.8 in 2009 and $11.6 million in the first six months of 2010, while net worth declined to just 2.8%. Assets were $604 million as of mid year.