The $320 million SkyOne Federal Credit Union, Hawthorne, Calif. announced Monday it has won NCUA approval to merge two small and struggling airline credit unions with consolidation expected by yearend.
Being merged into SkyOne, the former FAA FCU, and holding a tip charter are Pacific Advantage FCU, originally formed to serve employees of Japan Airlines, and Cypress West FCU, originally formed to serve employees of Qantas Airways. Both CUs are located in the San Francisco Bay Area.
"These are two good solid, credit unions that are well capitalized but have gone negative in the last few years and decided it was time to look for merger partners," said Eileen Rivera, president/CEO of SkyOne. "Before they had to start using up their capital, their boards decided it was time to make that move before being forced to act."
The mergers still require approval of the membership of both CUs, Rivera said.
The branches of both credit unions will continue to operate, giving SkyOne an expanded presence in San Francisco, California and Honolulu.
As a result of the merger, the combined credit union will have assets of $347 million and 28,500 members. "We are honored and excited to be able to serve the members of Pacific Advantage and Cypress West," Rivera said. "Our common bond through our commitment to the air transportation industry makes this merger a perfect fit."
SkyOne has 25,000 members.