Navy Sending Team to Discuss USA Fed Merger
Navy Federal Credit Union confirmed Wednesday it is sending an executive team to San Diego next week to explore merger prospects with the troubled $634 million USA Fed CU, which for some weeks has been actively soliciting potential suitors.
There were reports an NCUA bidders' meeting is slated for Monday in San Diego.
"We have been invited by their CEO, Mary Cunningham, to bid on the credit union since their membership would represent a good fit," said a Navy spokeswoman.
The move by Navy if successful would represent its latest attempt to expand, via the merger route, its national footprint particularly at U.S. military operations. USA Fed, which serves the Naval Training Center in San Diego, is a prime California military CU but like a number of CUs in the southern part of the state has become mired in deep loan trouble tied to the recession and high unemployment.
"The suggested merger (with USA Fed) is under consideration and something we will look at," said the spokeswoman. Just how many other large CUs perhaps from the East Coast or the Midwest might also be bidding was unclear.
In an article appearing Tuesday in the San Diego Union Tribune Navy Fed officials also said the talks "
are in the preliminary stage and USA Fed has contacted other potential buyers."Cunningham, who is a member of the CUNA Board declined official comment and a former chairman of the National Credit Union Foundation board. There was no statement issued by the NCUA.