Two Oregon CUs Talk Merger; Another Michigan Deal
Two more merger announcements, including one in Oregon--now one of the nation's hot spots for the consolidation trend--highlighted the weekend news.
In Oregon, the $650 million Northwest Community CU of Eugene said it has signed a letter of intent with the $140 million Mid Oregon FCU of Bend to explore a merger which if approved by members and regulators could become effective in June 2011. It would create the state's fifth largest CU with a field of membership covering an area encompassing metro Portland and central Oregon.
Both CUs, it was emphasized, are financially healthy with Northwest holding net worth of 8.93% and Mid Oregon at 9.6%.
"Both credit unions can stand on their own but we saw a strategic partnership where we could leverage our strength," said Matt Purvis, vice president of Northwest Community, which has 15 branches in Eugene and metro Portland.
"The combination of these two successful organizations could make for a perfect fit," said Barb Blackmore, chair of Northwest Community. "We are excited to explore the possible improvements that would come with a merger. The goal of both organizations is to offer a combined credit union that is capable of offering more convenience, more locations and more technology services for banking throughout Oregon."
Meanwhile, in Michigan, the $434 million Community Choice of Farmington Hills said it has completed the merger of the ailing $4 million Kelly FCU of Troy following NCUA and Michigan regulatory approval. Kelly, which serves a member base of Kelly Services, the temporary help agency, had sought out Community Choice as a merger partner after the firm dispersed some of its operations out of its suburban Detroit site, officials said.
"It's a win-win for us and we believe it will be an advantage for the members of Kelly," said Robert Bava, president/CEO of Community Choice.