Navy Federal Outlines Merger
Now set to complete its merger of the $605 million USA Federal Credit Union of San Diego, the $43 billion Navy ?Federal Credit Union last week set out a year-end 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 Fed's former President/CEO Mary Cunningham and an ?ex-CUNA director have formally resigned.
At the time of the deal, the ?Virginia-based Navy said it would be offering positions to all senior managers of USA Fed.
Navy said also 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 said it would first begin automatic online access of USA Fed members and transfer of savings accounts followed this week by migration of money market accounts. In the third week of November, credit card conversion letters would go out plus migration of IRA and holiday accounts. In the final week, Navy Fed will ?replace insurance and debt cancellation coverage.
Third-quarter Call Reports note that USA Fed's financial ?condition had deteriorated at the time of the merger, with net worth dropping from 2.76% in June to 2.27% and delinquencies at 6%.
Navy, which now has 500,000 members in southern California, said again last week it has no plans to rejoin CUNA or the California and Nevada Credit Union Leagues despite courting by the leaders of both groups.