Security Ties to Failed Utah CU Began in October
It may have been a surprise to those outside Utah, but the takeover late yesterday by the $6 billion Security Service Federal Credit Union of the NCUA-conserved Family First FCU of Orem has been in the works since last October.
Indeed, under NCUA's confidentiality rules the San Antonio CU has been operating the long-ailing Family First under a management agreement with the agency completing the liquidation and purchase/assumption Tuesday. Family First has been under NCUA conservatorship since last July.
For Security Service, it is the second acquisition of a Utah CU in less than three months after it took over the troubled $210 million Beehive CU of Salt Lake City, also under NCUA purview.
"We are confident this acquisition will bring about positive changes for the Family First membership," said David Reynolds, SSFCU president/CEO in a statement. "We are committed to providing our new members in Utah with the Security Service tradition of superior service, affordable products and attractive rates for deposits and loans that will help them meet all their financial needs." Terms of the Family First transaction were not disclosed.
Security Service said it might take until mid-summer for the computer conversion to be completed, but signage and new marketing materials have been in preparation for weeks in anticipation of the NCUA-approved transaction.
As to whether more Utah mergers might be in the offing, John Worthington, senior vice president of the Texas CU, said, "Right now we have our hands full but we would have to look at each case as they arise."
Family First lost nearly $17 million and had negative net worth at yearend. Family First, currently with 18,000 members, was chartered in 1947 to serve employees of Geneva Steel Co. In addition to Orem, Family First has branches in Pleasant Grove, Springville and American Fork, plus Walmart facilities in Payson and Lindon.