In yearend action, the NCUA has cleared the way for the $403 million Southeast Financial Credit Union of Franklin, Tenn., to make its first entry into Ohio by merging the struggling First Ohio CU of Fostoria.
A formal announcement of the pending merger of the $80 million First Ohio is expected this week, sources said. It is the 11th merger for Southeast and its largest.
Southeast, whose primary FOM is metro Nashville, also has branches in Kentucky and Mississippi.
First Ohio, which lost $347,000 in 2010 and $68,000 in the first three months of last year, retains 8.92% net worth but first began contemplating a merger partner “a couple of years ago,” said a source close to negotiations.
First Ohio with 12,000 members and located 40 miles south of Toledo has long experienced the fallout from a down economy in that part of the state. In addition to Fostoria, the CU has branches in Tiffin and Upper Sandusky.
Members of First Ohio approved the merger with Southeast on Dec. 22.
Last January Southeast’s chief operating officer, Jeff Dahlstrom, told the Nashville Business Journal that his CU did expect to grow in 2011 “after holding back in the downturn” and now looks for further opportunities.
In other NCUA moves, the agency approved a merger by the $901 million Selco Community CU of Eugene, Ore. of the $40 million Forest Park FCU of Portland. The two-branch Forest Park CU has been serving a manufacturing base including employees of ESCO Corp.
The NCUA also approved a Memphis merger by the $103 million Southern Security CU of the $21 million Postal Employees CU and in Evansville, Ind., cleared a consolidation of the $55 million Sterling United of the $7 million Gas and Electric Employees CU.