America First Takes Over Troubled Mountain High FCU
In a NCUA supervisory merger, the $4.8 billion America First Federal Credit Union has taken over the $50 million Mountain High FCU of Provo, Utah.
America First of Riverdale, Utah had been providing management assistance to the troubled Provo CU for several months with NCUA deciding last week to pick America First as the successor. Terms were not disclosed.
"It was a case of NCUA deciding that Mountain High had insufficient capital and could not continue," explained John Lund, executive vice president of America First.
Mountain High, with 7,400 members, "does fit well into our own membership," said Lund in describing what he called an "emergency merger." In 2009 Mountain High had a $5.4 million loss and negative net worth after losing $1.7 million in 2008.
The merger of Mountain High follows last August's takeover, also cleared by NCUA of the failed Community One FCU of Las Vegas by America First FCU.