Texas Giant Security Service FCU Acquires Another Colorado Failure

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FORT COLLINS, Colo. – State regulators have assigned the operations of Norbel CU to Security Service FCU, the San Antonio credit union giant that has been expanding its Colorado market by acquiring troubled institutions.

The one-time $130-million Norbel had just over 1% net worth at March 31 and reported a whopping $9.8 million loss for the first quarter, after posting a $1.1 million loss for 2009.

The $5.6 billion Security Service is one of a handful of healthy large credit unions that NCUA has been turning to take over the assets of a growing number of failures. It acquired Denver-based Aurora Catholic FCU in 2009, New Horizons Community FCU in Denver in 2007, and as far back as 2004, acquired Denver’s Diakonia FCU.

Norbel will lay off employees from its branches in Loveland, Fort Collins, Longmont, Greeley and Broomfield as of close of business July 29. The employees will have the opportunity to apply for employment with Security Service, though some of the current Norbel job responsibilities will be absorbed by the acquiring credit union.

Norbel is the 16th credit union failure so far in 2010.

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