The NCUA said there has been no unusual activity in the area of account closures or withdrawals at Eastern Financial Florida Credit Union two weeks after the $1.6 billion financial institution was placed in conservatorship.

"The situation at Eastern has been very stable in terms of the financial condition and member reaction," said John McKechnie, NCUA director of public and congressional affairs, adding service has continued uninterrupted. So far, a minimal number of member calls have come in asking about the conservatorship, he noted. Three were received last week.

On April 24, the Florida Office of Financial Regulations' Bureau of Credit Union Regulation appointed the NCUA as Eastern Financials' conservator, which then appointed $1.6 billion Space Coast Credit Union to assume managerial duties. Three days later, the Melbourne, Fla.-based credit union announced its intent to merge with Eastern Financial in Miramar, Fla.

Regarding the merger proposal, McKechnie said the NCUA Board "is continuing to assess its future course of action and has not made any decisions at this point." Space Coast spokeswoman Meredith Gibson said the merger has not been approved.

"There is a specific approval process by the NCUA and that is proceeding," Gibson said. "[Space Coast] management is still on-site at Eastern Financial, assessing work flows and developing production and servicing plans."

Instant Insights /

Eastern Financial Stable, NCUA Assessing Future

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