ALEXANDRIA, Va. – NCUA this morning announced the purchase and assumption of two more troubled credit unions, making a total of 21 credit union failures so far this year.
Under one of the deals, $4 billion Alaska USA FCU will acquire the remnants of The Members Own CU, a one-time $110 million credit union in Victorville, Calif. that reported almost $8 million of losses over the past 18 months and had less than 1% net worth. It is the second P&A deal for the Alaska credit union giant, which acquired the remnants of failed High Desert FCU last month.
In the second deal, Security Service FCU, the $5 billion San Antonio, Texas, credit union, agreed to acquire the remnants of West Texas CU n El Paso, a one-time $100 million credit union being liquidated. The credit union,chartered in 1964, lost almost $11 million in the past 18 months and had $84 million in assets at the time of liquidation.
The two P&A deals are consistent with NCUA efforts to get large, well-capitalized credit unions to absorb member accounts of failed credit unions.
NCUA has stepped up the pace of resolving failed credit unions over the past few weeks, resolving a growing number failures in California, Nevada and Florida during that time.
