Anchorage Daily News

Anchorage-based Alaska USA Federal Credit Union said Friday it is buying a California credit union that has been under federal control since late last year due to steep financial losses.

Alaska USA said it supplied the winning bid when the National Credit Union Administration this year sought a buyer for High Desert Federal Credit Union in Apple Valley, Calif.

The NCUA took control of High Desert, which has served San Bernardino County residents for nearly 60 years, last October. The California credit union said it was in financial trouble due to delinquent construction loans.

The purchase will be effective July 1, according to Alaska USA, which says its Alaska customers will not see any changes.

The California credit union's members will retain their accounts but switch to Alaska USA products and services, and the branches will be renamed Alaska USA, said Dan McCue, an Alaska USA senior vice president.

He said this is the credit union's second foray outside of Alaska. It operates 17 branches in the Seattle area.

The decision to buy High Desert aligns with Alaska USA's goal to grow and diversify in new markets, McCue said.

Alaska USA has about 350,000 members and assets of $3.9 billion; High Desert has 11,000 members and $102 million in assets, according to Alaska USA.

Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.

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