Denali Federal Credit Union (Anchorage, AK) and NuVision Credit Union (Huntington Beach, CA) are proposing a merger.
The combined $2.2 billion institution would have branches in the five states of Alaska, Washington, Arizona, California and Wyoming.
According to a fact sheet, Denali FCU looked at 30 potential credit union merger partners inside and outside of Alaska before deciding to partner with NuVision.
Branches in Washington and Alaska will retain the Denali name and brand.
Denali FCU stated that the proposed merger would diversify the credit union's economic base, improve operational efficiency, and put it in a stronger competitive posture.
The deal requires approval from the National Credit Union Administration and Denali FCU's members. If all approvals are received, the deal is expected to be finalized by the end of 2018.
Read more.
Subscribe to:
Post Comments (Atom)
Denali board should be congratulated for putting their members ahead of their egos.
ReplyDeleteScores of boards should be doing the same thing.
Good for them.
Now with that asset size both credit unions and their members are better off.
Denali has by dying a slow death. Cutting costs in order to stay alive (the first sign of trouble). Reaching deep into indirect lending because they don’t know how to lend internally (second sign of trouble). Past dues, TDR and credit losses (1.65% NCO in 2017) have been on a steady upward trend (reaching for revenue). Net worth is now 7.5% (result of inefficient operations; reaching for earnings). If NuVision can cut enough cost out of this organization and survive the pending credit losses in the loan portfolio, this merger will be a good one from the simple point of having access to a large deposit base that throws off a lot of fee and other income (exceeds 3.35% of assets; credit unions not subject to CRA). If you work in support or operations at Denali, get out your resume, your days are numbered – same for senior management team. Deep cuts coming soon that will be good for members. NuVision is a well-run organization with ample capital that needs funding to fuel its expansion in SoCal.
ReplyDeleteYou give new meaning to the phrase, “hell hath no fury like a woman scorned”. Even if what you say is true, which it mostly is not, your description is appropriate for 70% of credit unions.
DeleteFrom Denali press release: "Are both credit unions financially sound? ... Denali exceeds the highest regulatory capital ratio,
ReplyDeletecontinues to be profitable, and your accounts remain safe and sound."
TRUTH: Denali has lost money in three out of the last six quarters. Source: NCUA 5300.