Mission SF May Have Partner
The travail of the $6.7 million Mission SF FCU of San Francisco continued last week, with apparently desperate efforts under way to save the deeply ailing community development CU from being liquidated or merged by the NCUA.
At the same time, some of Mission's healthier neighbors expressed displeasure over its ongoing campaign spurred by its board and community leaders to raise $200,000 in capital as demanded by regulators under a March 15 deadline.
"It's fair to say that we strongly disagree with how this campaign is being conducted as it brings undue attention on all of us," said Steven Stapp, president/CEO of the $777 million San Francisco FCU, which was a one-time potential partner for Mission.
Stapp said his CU remains "a healthy, well-capitalized credit union not under that kind of financial strain and has long done its part to serve this low-income, migrant neighborhood." San Francisco FCU had also been one of the nearly dozen CUs in California and New York that contributed $5,000 to $8,000 to bolster Mission, which had suffered large losses last year on real estate loans.
Another Bay Area CU, the $73 million Self-Help of Oakland with ties to a North Carolina affiliate by the same name, was identified by Mission management as a potential merger partner. A spokesman for Self-Help declined comment on any Mission deal, and NCUA officials were expected to make some final determinations on Mission's status late last week.
"I think NCUA has a meeting on our status Thursday," said Salvador Duran, the CEO of Mission.
Since news broke about Mission's capital raising campaign, Stapp of San Francisco FCU said his CU for weeks has been getting queries from members "thinking we're in the same boat," a point that SFFCU staff has sought to dispel. Newspaper articles on Mission's status appeared over the weekend with an April 30 deadline cited as the date for resolution of Mission.
Stapp said San Francisco FCU has no interest now in being a Mission bidder. His said his CU already has $20 million of loans in the city's Mission district.
Mission, which has been on an NCUA watch list since last fall, lost $234,000 in the first nine months of last year and has had one of the highest delinquency rates among California CUs.