SANTA ANA, Calif. SchoolsFirst FCU, with $9.4 billion in assets, will pick up three branches in suburban Los Angeles with the merger of All Valley FCU, a one-time $95-million teachers credit union that NCUA designated as in poor financial condition.
All Valley, which serves employees of various Los Angeles school districts and some select groups, had losses of $1.4 million in 2012 and of $360,000 in 2011 and net worth of just 4% at year end. The troubled credit union operates branches in Lancaster and inside Walmart stores in Santa Clarita and Palmdale.
Several other credit union giants were cleared to acquire troubled credit unions, NCUA reported Friday: Metro CU, a fast-growing $1.1-billion credit union in the Boston suburb of Chelsea, Mass., was approved to acquire Fenwal CU, a troubled, $2-million, single-branch credit union in nearby Ashland, Mass.; Michigan State University FCU, with $2.3 billion in assets, was cleared to acquire Eaton County Educational CU, a $33-million Eaton, Mich.-based credit union that reported losses each of the past four years; New Mexico Educators FCU, with $1.3 billion in assets, was approved to merge with New Mexico Energy FCU, a $49-million Albuquerque-based credit union that has reported losses for four years in a row.
NCUA also approved the merger of El Paso Corporation FCU, a $122-million Houston credit union whose chief sponsor was eliminated in last year’s massive corporate merger, into $330-million Houston-based First Service FCU, which serves employees of Kinder Morgan Inc., El Paso Corp’s acquirer.