DEVILS LAKE, N.D.–A credit union taken over by NCUA earlier this year is being merged.
Citizens Community Credit Union here said it has entered into a "conclusive agreement" to merge with First Community Credit Union in Jamestown, N.D., according to a news release.
"It is rare to find two credit unions whose culture, business approach and member origins align as well as First Community and Citizens," said FCCU President/CEO James Schmitz said in a statement. "We look forward to working with the Citizens team to continue our shared history of exceeding the needs of our commercial and consumer members."
In June, NCUA placed the then $201-million Citizens Community into conservatorship, citing unsafe and unsound practices.” The credit union lost nearly $1 million during Q1, while also reporting $12.3 million in delinquencies across 117 accounts as of its Sept. 30 call report. The delinquency ratio as of Q1 was nearly 10 times higher than at the end of 2015. CCCU posted an $8-million loss as of Sept. 30.
The merger is expected to close Jan. 1, after which FCCU will have approximately $800 million in assets.