Dade County FCU Seeking Approval to Merge With Keys FCU
Dade County FCU is awaiting approval from the NCUA on its request to take over Keys FCU, which the NCUA placed into conservatorship last September.
Keys FCU, a 13,000-member $156 million credit union, like many financial institutions in the sand states, has been severely undercapitalized and suffered losses in its loan portfolio.
NCUA Director of Public and Congressional Affairs John McKechnie said the approval process has begun, but the merger hasn't been completed.
As of March 31, Keys' net worth ratio was 5.67%, down from 6.17% at the end of last December and 6.18% at the end of last September, according to its financial report filed with the NCUA.
It had a return on average assets of negative 3.38% at the end of the first quarter, compared to negative 2.79% at the end of last December and negative 3.25% at the end of last September.
Its delinquent loan ratio was 2.26% at the end of March, compared with 5.06% at the end of December and 5.04% at the end of September.
Dade County FCU President/CEO George Joseph told Credit Union Times that Keys FCU's financial problems are "of concern to us, but not one that we don't think can be resolved."
He said Keys FCU, which has five branches, is a "natural match," for their credit union because it would give them a presence in Dade County and "everything south of it to the southern tip of the United States."
Joseph declined to say what kind of assistance the credit union will receive from the NCUA.
Dade County FCU has 85,800 members and $447 million in assets.