ALEXANDRIA, Va. -- NCUA said this morning it has chosen Public Service CU, of Denver, as the winning bidder for the remnants of the failed Norlarco CU.
NCUA said the bid by the $650 million credit union was the best of the three submitted for Norlarco, one of three credit unions that have failed because of their exposure to Florida real estate speculation. The other bidders for Norlarco, which now has $290 million in assets, were Belco FCU and Ent FCU.
Under the deal, NCUA, which has been running Norlarco under conservatorship, will sell the credit union's healthy assets, eight branches and more than 25,000 member accounts, to Public Service CU, and the federal agency will assume the credit union's bad assets, some $200 million of Florida real estate loans.
NCUA has sold off the other two credit unions in the Florida land deals, Huron River Area FCU and New Horizons Community FCU, in similar deals over the past few months.
The three deals have left NCUA with more than $300 million worth of troubled loans in the Florida land bust.
