NCUA Approves United Purchase of Bank (Misc News: December 6, 2011)
The NCUA has approved St. Joseph-based United FCU’s purchase of Griffith Savings Bank, the first purchase of a bank by a federally chartered credit union. The deal now awaits approval by the FDIC.
United President/CEO Gary Easterling told CU Journal that the credit union regulator will require United to divest certain loans held by Griffith which are not allowed for federally chartered credit unions.
United announced in July that it planned to purchase Griffith, a troubled single-branch savings bank based in Griffith, Ind., just 90 miles from United’s headquarters. Griffith’s office will become a branch of the credit union and its customers will become United members.
United has $1.3 billion in assets and operates 22 offices in Michigan, Nevada, Arkansas, North Carolina and Ohio. It has a recent history of taking over troubled credit unions, including the 2009 takeover of Clearstar Financial CU, a former $175 million credit union in Reno, Nev.