Mountain America to Exit New Mexico
Utah credit union agrees to spin off its two Albuquerque branches to Sandia Laboratory FCU.
Mountain America Federal Credit Union announced Thursday it plans to exit New Mexico in coming months by spinning off its two branches in Albuquerque to Sandia Laboratory Federal Credit Union.
Sandia Laboratory FCU, which had nearly $4.1 billion in assets on June 30, said its assets would grow to $4.3 billion when the spinoff is complete. The deal was approved by the NCUA and requires a vote approving the deal from affected Mountain America members.
The term “spin-off” is usually associated with a transaction involving a business selling part of its operation to another business. However, the term has special meaning under NCUA rules: It is essentially a transfer of assets to another credit union without a gain.
The credit union version of spinoffs are unusual, but one was completed in April when First Harvest Credit Union based near Camden, N.J. ($458 million in assets, 46,569 members) transferred its Williamsport, Pa., branch to Members 1st Federal Credit Union of Enola, Pa. ($7.9 billion in assets, 589,036 members).
In a news release from the credit unions, Mountain America ($19.5 billion in assets, 1.2 million members) said the spinoff would allow it “to focus on other geographies.”
“Our primary objective was to find a partner as committed to taking care of members and employees as we are,” Mountain America President/CEO Sterling Nielsen said. “SLFCU shares many of our values, service orientation, our mission to deliver quality service and technology, and to provide valuable financial guidance.”
As of March 31, NCUA data showed the Sandy, Utah-based credit union had 105 locations with 75 in Utah, 12 in Idaho, nine in Arizona, five in Nevada, two Montana and the two in New Mexico. CU Times archives showed Mountain America had one branch in Albuquerque by 2002 and the second one opened in 2008.
Sandia Laboratory FCU said it will have 15 locations with the additional Albuquerque branches. NCUA data showed it already had six locations in Albuquerque as of March, including its headquarters. It will also add 15 employees.
Sandia Laboratory FCU President/CEO Steph Sherrodd said the credit union is “a values-based organization that takes pride in putting our members first.”
“This acquisition accelerates our goal to provide an experience that makes banking better for more individuals in New Mexico,” Sherrodd said.