Alaska USA Expands Washington FOM With Seattle Merger
The $4 billion Alaska USA Federal Credit Union, long a presence in the Washington State market, has now expanded its footprint in that state.
The expansion came through a merger which has been in the works for weeks following a pullout by another Seattle CU, the $228 million Prevail CU which reportedly declined to take on Transportation Northwest loan losses without NCUA financial assistance.
In a statement, Alaska USA of Anchorage noted that with 17 branches in the state and operating since 1983, the Transportation merger would be handled "in a smooth transition" based on its own experience including taking over two failed High Desert California CUs last year.
The Anchorage CU earlier this year purchased five branches including one a shared facility of the conserved Arrowhead Central CU of San Bernardino.
Transportation had been under a consent order since April from the Washington Department of Financial Institutions to seek a merger partner after it lost $3 million over the last two years and with net worth at 1%. Originally, the CU was being managed by Prevail but following negotiations with Alaska USA, NCUA under a bidding procedure granted Alaska USA the right to take over Transportation.
Transportation Northwest has two branches in the Seattle area and 2,600 members.