In the second such move nationally in a couple months, the $345 million GFA FCU of Gardner, Mass. plans to purchase and merge the ailing Monadnock Community Bank of Peterborough, N.H., it was disclosed Thursday.
The transaction is unusual and represents a new test of regulatory oversight and authority since the $83 million Monadnock, itself a former CU-turned-bank, is stock owned. CUs are prohibited from owning stock-owned banks so the deal is structured to meet that problem, industry sources said.
Details on the purchase deal remained sketchy but it was learned the proposed transaction has been under discussion since last fall as NCUA and bank regulators weighed the purchase by the $1.3 billion United FCU of St. Joseph, Mich., of the assets of the $80 million Griffith Savings Bank of Griffith, Ind.
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