Merger-Mates Sought for Troubled California CU

SACRAMENTO, Calif. – February 8, 2008 State regulators yesterday announced they have received applications to merge two more troubled credit unions, as increasing numbers of credit unions in the state are reporting big losses for 2007.

The Department of Financial Institutions reported that California Preferred CU, a $43 million San Francisco credit union that reported a $946,000 loss for 2007, has applied to merge with Redwood CU, in nearby Santa Rosa.

Also, Commerce FCU, a $24 million credit union in Commerce that lost $67,000 last year, has applied to merge into E-Central CU in Pasadena.

In addition, NCUA is looking for a merger-mate for Cal State 9 CU, the one-time $440 million credit union that had a whopping $61.6 million loss last year.

In recent months Capital Power CU, a $49 million Sacramento credit union that lost $4.5 million in the first half of 2007, was combined with SAFE CU; Golden Bay FCU, a $225 million Mountain View credit union with more than $1 million in losses, was merged into Meriwest CU; and, Great American CU, a $50 million San Diego credit union that lost $1.6 million in 2006, was merged into Wescom CU. (Credit Union Journal)