Monday, October 1, 2018

Merger Creates $2.2 Billion Multi-State Credit Union

The merger between Nuvision Credit Union (Huntington, CA) and Denali Federal Credit Union (Anchorage, AK) became effective on October 1.

The merger was approved by National Credit Union Administration on August 15 and Denali's members on September 21.

The combined credit union would operate in five states -- Alaska, Washington, California, Arizona and Wyoming -- and have over $2.2 billion in assets.

As of the June 2018, Nuvision had almost $1.59 billion in assets and Denali had $671 million in assets.

Denali will operate as a division of Nuvision Credit Union.

1 comment:

  1. Denali has been dying a slow death for quite some time now. It is unproductive. Net charge-offs have been growing as it had been taking on greater levels of risk in order to offset the lack of productivity (42% of loans are indirect with an additional 10% unsecured). Its dividend rate is bottom quartile among credit unions. It generates a massive amount of fee income for its size. Fee income per member is 200% of peer. Net worth sits at 7.6%. This merger will be a good thing for its members if the excessive amount of expense is trimmed out. I’m sure NCUA is very happy with this transaction.



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