Michigan-based United Federal Credit Union (UFCU) has purchased the assets of Indiana-based Griffith Savings Bank (GSB) marking the first acquisition of a state-chartered, FDIC-insured mutual savings bank by a federally chartered credit union.
The purchase was approved by Federal regulators, the National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corporation (FDIC), in mid-December 2011.
As per the deal, UFCU acquired all loans, investments, real estate, accrued interest receivables, and other banking related assets of GSB with an estimated value of $80m, including deposits, Federal Home Loan Bank advances, and accrued interest payable of $80m.
The savings bank has retained certain assets to fund accrued liabilities relating to its employee benefit plans, which were not acquired by UFCU in the transaction. The remaining net assets will be liquidated and distributed at the time of liquidation to its depositors.
UFCU, operating since 1949, consists of more than 108,000 Member/owners worldwide, and manages assets in excess of $1.3bn.