Friday, February 1, 2013

Corporate CU Merger Receives NCUA Assistance

The merger of Corporate One Federal Credit Union and Southeast Corporate Federal Credit Union was facilitated by special assistance provided by NCUA.

According to Corporate One's Unaudited Q4 2012 Financial Statement (footnote 9),

"[i]n order to accomplish the merger of a $1.5 billion institution into Corporate One, the NCUA provided certain assistance up to $15 million. The assistance was in the form of cash and a conditional indemnification to cover losses on certain assets acquired by Corporate One. In NCUA Rules and Regulations Part 704.2, intangible assets in excess of one half percent of MDANA must be deducted from a corporate's adjusted core capital. For eight years, the NCUA is allowing Corporate One to add back such adjustment to adjusted core capital for any excess intangibles related to core deposits."

Posted by at
Labels: , ,

1 comment:

  1. AnonymousFebruary 2, 2013 at 8:01 AM

    Forbearance - the gift that keeps on giving. Contra Costa CU will have to get members to pay to keep deposits at the cu if this keeps up.
    Can't go much lower than 35 bps, after all.

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.