The $7.3 billion Alliant Credit Union, headquartered in Chicago, is merging with the troubled $157 million Continental Federal Credit Union, headquartered in Tempe.
"This is a win-win situation for both the Alliant Credit Union and Continental Federal Credit Union members," Alliant Credit Union CEO David Mooney said in an announcement on the CU's Website.
"This merger makes sense for a number of reasons. First, it is synergistic with our legacy sponsor United Airlines' merger with Continental Airlines. Second, we will realize increased economies of scale which will reduce unit costs, strengthening Alliant's cost advantage and further enhancing our financial value proposition. And third, we will increase our presence and access for our members in several other key large metropolitan areas where Continental Federal Credit Union operates."
"Alliant has a proven track record of serving airline industry employees with better than bank rates and 24/7 member service worldwide," said Thomas J. Martin, CEO of Continental Federal Credit Union. "Additionally, Alliant thoroughly understands the unique financial needs of airline employees. Speaking on behalf of our Board of Directors and Executive Team, we firmly believe our members will be well served by this merger."
NCUA records show Continental as having just over $157 million dollars in assets and a net worth ratio of 3.39% as of the end of June. The credit union had almost 4.3 million in negative income for the first six months of this year, according to NCUA.