Having just won NCUA approval, the $1.7 billion Chevron Federal Credit Union of Oakland, Calif. said Wednesday it is merging the $175 million Spectrum FCU of San Francisco in a deal set for final completion this September following a March 28 member vote.
Spectrum, which serves employees of the Bechtel Corp., the worldwide construction firm, struggled last year with capital impairment constraints, 5% net worth and a small 2011 loss, said Jim Mooney, president/CEO of Chevron, which serves the oil giant of the same name.
“For us this merger is a winning combination since both credit unions are alike in serving a large employee work force and a strong professional base,” Mooney said.
Talks between the two CUs have been ongoing for nearly a year and came to fruition last October, Mooney said.
Once merged, the two CUs would have a membership of 87,000.
The SEG-based Chevron has 14 branches in California, Texas, Louisiana and Mississippi.
Spectrum has four branches in San Francisco, Houston and Frederick, Md.
Mooney said his own CU has remained healthy despite a small loss in 2011.
“We did absorb that $3.5 million assessment last year,” said Mooney noting that earnings so far in 2012 are positive. “We’re doing just fine”
He said there are no plans to scout further merger prospects in California. Chevron FCU did merge two $5 million CUs in 2011: Stewart FCU of Houston and Star Energy CU of Bakersfield, Calif.