Navy Federal Is Sending Team to Discuss USA Federal Merger
The world's largest credit union, the $40 billion Navy Federal Credit Union, confirmed last week its interest in acquiring the ailing $634 million USA Federal Credit Union of San Diego.
The prospective merger, marked by Navy Federal's participation at an upcoming conference slated for this week in San Diego, comes as the NCUA publicly acknowledged the serious problems at the California CU. The credit union began last spring soliciting bids from suitors, including Navy Federal.
Apart from USA Federal, Navy Federal officials have also acknowledged their possible interest in a merger with the NCUA-conserved $156 million Keys FCU of Key West, Fla., which also serves a military complex. That CU has been under conservatorship for nearly a year and for a time was being partnered with the $505 million Dade County FCU of Miami, which later dropped its merger deal.
Meanwhile, the NCUA's overall policy on mergers of troubled CUs was coming under new scrutiny last week following a separate July 31 conservatorship in Utah of the $139 million Family First FCU of Orem.