The $4.8 billion America First Federal Credit Union, Utah's largest, has taken over the $50 million Mountain High FCU of Provo, Utah, in an NCUA supervisory merger.
The Provo CU had a $5.4 million loss in 2009 and a negative net worth following on a $1.7 million loss in 2008.
"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, which is based in Riverdale, Utah.
Mountain High, with 7,400 members, "does fit well into our own membership," said Lund in describing what he called the emergency merger arranged by the NCUA. Terms were not disclosed.
For several months, America First had been providing management assistance to the Provo CU, with the NCUA deciding in January to pick America First as the successor CU.
The merger of Mountain High follows the takeover last August by America First of the failed Community One FCU of Las Vegas, also cleared by the NCUA.
--jrubenstein@cutimes.com
