Two more bank failures Friday including a $2 billion institution in northern Colorado were putting credit unions once again back in the limelight.
"I think we opened four accounts in an hour this morning which is quite a lot for us," said Stan Wolff-Mills, director of marketing/human resources at the $37 million College Credit Union of Greeley.
The new business for College CU follows the collapse and FDIC takeover of New Frontier Bank of Colorado, the largest in Greeley, a city of 75,000 and home to the University of Northern Colorado.
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Media reports said the Greeley bank had been under a cease and desist order since last December following faulty loans and brokered deposits. The bank had also suffered losses in connection with the bankruptcy in January of a large nearby dairy and a failed golf course project.
The FDIC said in Washington it was looking for a buyer for the Greeley bank and in the meantime had set up its own bank to handle insured customer deposits. The closure was ordered by the state Division of Banking and followed the departure of top management last year.
Separately on Friday, regulators closed the $492 million Cape Fear Bank in Wilmington, N.C. with assets assumed by First Federal Savings & Loan Assn. of Charleston, S.C. also in an FDIC transaction. The Cape Fear and Greeley failures were the 23rd this year and the second in Colorado.
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