Navy Federal Outlines Merger Timeline on USA Federal
The $43 billion Navy Federal Credit Union, on course to complete its merger of the $605 million USA Federal CU of San Diego, is providing new USA Federal members a yearend timeline on the integration process of products and services.
The nation's largest CU, which took over the deeply troubled California CU at regulatory urging in September, also disclosed that USA Federal's former president/CEO Mary Cunningham and an ex-CUNA director have formally resigned.
At the time of the deal, the Virginia-based Navy Federal said it would be offering positions to all senior managers of USA Fed.
Navy Federal also said the USA consolidation would create a West Coast hub for the CU as part of its network of 200 worldwide branches.
Under the timeline as posted on its website, Navy Federal said that during this week it would begin automatic online access of USA Federal members and transfer of savings accounts to follow next week by migration of money market accounts. In the third week of November, credit card conversion letters would go out plus migration of IRA/Holiday accounts. In the final week of the month, Navy Federal would replace insurance and debt cancellation coverage.
Third quarter call reports note that USA Federal's financial condition had deteriorated further with net worth dropping from 2.76% in June to 2.27% and delinquencies at 6%.
Navy Federal said its joint operations with USA Fed would continue through the end of the year.Navy Federal also notedit now has 500,000 members in southern California though its largest membership count remains in Washington D.C. and the Tidewater/Hampton Roads area of Virginia.