According to legacy asset loss estimates provided to Credit Union Times by the NCUA, investments made by Western Corporate FCU are generating far more losses than those that were made at other failed corporates.
Texas-based corporate posts $14 million in profits, coverage ratio of 88%.
The $3 billion Catalyst Corporate FCU announced Oct. 29 the completion of its purchase and assumption of the Phoenix-based First Corporate Credit Union, a so-called pass-through corporate that struggled to gain enough scale to replace services provided by U.S. Central FCU.
Forty two of the 48 former FirstCorp members elected to stick with Catalyst, a number the Plano, Texas-based corporate said exceeded the expectations.
The head of one of Atlanta’s largest credit unions, Lin Hodges of the $1.1 billion Associated Credit Union, takes a dim view of “slash and burn” tactics when it comes to CU merging.