ANCHORAGE, Alaska – Alaska USA FCU said it has completed the acquisition of High Desert FCU, the one-time $190 million credit union based in Apple Valley, California, one of the biggest credit union failures in several years.
The deal marks a big move into the California market for Alaska USA, which operates 52 branches in Alaska and Washington state. High Desert was chartered to serve George Air Force Base in Victorville, California, and now serves the residents of San Bernardino County, California.
Alaska USA said the conversion of High Desert accounts was completed Sept. 6 and signs at High Desert’s three branches were changed over to the Alaska USA name over the Labor Day weekend. Members enrolled in High Desert online banking or phone banking (MoneyCA) were automatically enrolled in Alaska USA UltraBranch service, which provides online and telephone account access.
The $4 billion Alaska credit union agreed to acquire the 60-year-old credit union in a purchase and assumption agreement with NCUA, with the federal government agreeing to assume millions of dollars in bad loans from High Desert. High Desert was hurt by a large portfolio of home construction loans. It reported losses of $16 million for 2008 and $16.5 million for the first half of 2009, had negative net worth and just $94 million in assets by the time Alaska USA agreed to the deal. The losses caused NCUA to take the credit union under conservatorship last October.
