In December, NCUA approved the merger of insolvent Mountain High FCU (Provo, Utah) into America First FCU (Riverdale, UT).
Mountain High had almost $43 million in assets and reported a negative net worth of nearly $3.1 million at the end of 2009. Loans 60 days or more past due were $10.1 million at the end of 2009.
The credit union press has reported that this merger was an emergency merger. But beyond that, there is not much details.
So, credit unions should be interested in having the following questions answered by NCUA.
Did this merger receive any assistance from the NCUSIF?
If yes, what is type of assistance?
And what is the likely cost to the NCUSIF?
Was Mountain High FCU liquidated before the merger?
ReplyDeleteUnlike the FDIC, I don't see the NCUA including in their liquidation press releases the cost to the insurance fund or if any members had any losses of uninsured deposits.
What I've read in the credit union trade press, this was an emergency merger.
ReplyDeleteIf NCUA had liquidated Mountain High, it would have appeared as a closed credit union.
You are correct that NCUA does not provide any estimate of the cost to the NCUSIF or if members had any losses on uninsured deposits for a specific credit union failure.