The $4 billion Alaska USA Federal Credit Union, long a presence in the Washington State market, has now expanded its footprint in that state.
The expansion came through a merger which has been in the works for weeks following a pullout by another Seattle CU, the $228 million Prevail CU which reportedly declined to take on Transportation Northwest loan losses without NCUA financial assistance.
In a statement, Alaska USA of Anchorage noted that with 17 branches in the state and operating since 1983, the Transportation merger would be handled "in a smooth transition" based on its own experience including taking over two failed High Desert California CUs last year.
Recommended For You
The Anchorage CU earlier this year purchased five branches including one a shared facility of the conserved Arrowhead Central CU of San Bernardino.
Transportation had been under a consent order since April from the Washington Department of Financial Institutions to seek a merger partner after it lost $3 million over the last two years and with net worth at 1%. Originally, the CU was being managed by Prevail but following negotiations with Alaska USA, NCUA under a bidding procedure granted Alaska USA the right to take over Transportation.
Transportation Northwest has two branches in the Seattle area and 2,600 members.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
