ST. JOSEPH, Mich., Jan. 1, 2012 /PRNewswire/ -- United Federal Credit Union ("UFCU"), headquartered in St. Joseph, Michigan, announces that its historic purchase of the assets of Griffith Savings Bank ("GSB"), headquartered in Griffith, Indiana, has been completed effective January 1, 2012. The purchase marks the first time a federally chartered credit union has purchased the assets of a state-chartered, FDIC-insured mutual savings bank.
Gary L. Easterling, UFCU President/CEO, said, "The purchase of Griffith Savings Bank is a major achievement for us. We have, of course, set an important precedent in the world of banks and credit unions, but even more importantly, we look forward to bringing our style of people-first Member service to the residents of Griffith."
Federal regulators -- the National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corporation (FDIC) -- approved the purchase in mid-December. The former GSB branch located at 510 N. Broad St. in Griffith will open as a UFCU branch on January 3, 2012.
Under the terms of the purchase, UFCU acquired all loans, investments, real estate, accrued interest receivables, and other banking-related assets of GSB with an estimated value of approximately $80 million, and assumed all deposits, Federal Home Loan Bank advances, and accrued interest payable of approximately $80 million. GSB retains certain assets that will be used to fund accrued liabilities relating to its employee benefit plans, which were not acquired by UFCU in the transaction. GSB intends to liquidate and distribute any remaining net assets at the time of liquidation to its depositors.
Easterling said, "GSB was a great bank, with core values very similar to those of UFCU. That shared belief in Member service is at the heart of what made this purchase possible. Going forward, UFCU's financial strength will enable us to deliver more products, services, and benefits to Griffith, but it will be our hometown values that make the real difference."
United Federal Credit Union has served its Members since 1949 by helping them to build a sound financial future. UFCU consists of more than 108,000 Member/owners worldwide, and manages assets in excess of $1.3 billion. Its corporate offices and main branch are located in St. Joseph, Michigan, with additional branches in Arkansas, Indiana, Michigan, North Carolina, Nevada and Ohio.
SOURCE United Federal Credit Union