OAKLAND, Calif. – Fast-growing Self-Help FCU yesterday said it agreed to acquire another troubled California credit union, its fifth in two years, as it spreads the influence of its community development sponsor, North Carolina-based Center for Community Self-Help.
The development of a regional community development credit union is part of a national strategy by the Center which includes a California office of its consumer lobby, the Center for Responsible Lending.
The acquisition of United Savings FCU, a $24 million credit union based in nearby Antioch, will boost Center’s California CDCU start-up to almost $190 million in assets. Since its founding, Self-Help FCU has acquired four other troubled California credit unions: Community Trust FCU, Peoples’ Community FCU, El Futuro FCU and Kern Central CU.
The Center for Community Self-Help is financing the acquisition of the troubled credit unions, most of them undercapitalized, with $40 million of secondary capital funding provided by another of its affiliates, Self-Help Ventures Fund.
“United Savings’ location, strong management, and tradition of service are a great fit with our vision and existing branch network,” said Steve Zuckerman, managing director of Self-Help’s California operations. “The current and very challenging economic environment is making it increasingly difficult for many smaller financial institutions to thrive.”
United Savings FCU had losses in each of the last three years and a loss of $55,789 and net worth of 5.4% at March 31. It will operate as United Savings FCU, a division of Self-Help FCU.
