California CUs Complete Merger
The $1.5 billion Chevron Federal Credit Union is expanding its sponsor niche this month by merging with the ailing $5.9 million Star Energy CU of Bakersfield, Calif.
The consolidation was approved Jan. 13 by the NCUA and represents the nation's 10th CU with ties to the energy giant merged by Chevron FCU of Oakland over the last decade.
James Mooney, president/CEO of Chevron, said the merger has been in the discussion for several years and "help outs a credit union in a market of California that has witnessed a depressed economy."
The NCUA said the merger was completed at no cost to the NCUSIF, but the Central Valley CU had been under prompt corrective action after its net worth slid to 3.7% as of Sept. 30.