ALEXANDRIA, Va. -
Denver-based New Horizons Community CU, which was wounded by its subprime auto loans through Centrix Financial Services, was sold in a purchase and assumption agreement to Security Service FCU, broadening the Texas credit union's Colorado footprint.
Security Service has operated in Colorado since 1980 and currently has nine branches in the state.
The $4-billion credit union will acquire the assets of the Denver-based credit union in a purchase and assumption agreement from NCUA, which has operated New Horizons Community CU under conservatorship since last April.
During that time the credit union has worked off as much as half of its assets, with Security Service acquiring $152 million in assets of the smaller institution. New Horizons was chartered in 1934 and operates four branches in Colorado.
In a separate deal, NCUA sold Obelisk CU, a $56-million credit union based in New Albany, Ind., to Centra CU, a $700 million credit union in nearby Columbus, Ind. Obelisk will now be run as a branch of Centra CU.
In a purchase and assumption agreement, NCUA assumes certain debts of a troubled credit union, then sells off the viable assets, usually with some kind of financial assistance.
