ENDICOTT, N.Y. – Visions FCU has received approval from NCUA to enter the New Jersey market with the acquisition of Paragon FCU, a troubled one-time $415 million credit union.
Paragon, based in Montvale, has struggled with mortgage loan defaults, causing losses of more than $30 million the past four years, including a loss of $8.2 million for 2010. At mid year its net worth ratio had declined to just 3.2% and its assets to $325 million.
For Visions, a former IBM employees credit union which has experienced slow lending growth in the economic stagnation of upstate New York, it is its first foray into New Jersey. It posted a $14 million net for the first six months of 2011 and net worth of almost 13%.
The combined credit union will have 29 branches and more than 166,000 members in New York, New Jersey and Pennsylvania.
