Four more California credit unions are waiting for merger approvals from the state’s Department of Financial Institutions.
In October, the $142 million Community First Credit Union in Santa Rosa, Calif., announced the merger acquisition of the $5.5 million Health Care Professionals Federal Credit Union in Napa, Calif. Community First filed its request Oct. 1 with the DFI to merge with Health Care Professionals FCU.
The Health Care Professionals Board of Directors felt its credit union had to grow exponentially to be to the scale needed to implement Web-based home banking, next-generation ATMs and match the products and services offered by other community-based financial institutions, said Rita Crawford, board chair of Health Care Professionals FCU.
“After some analysis, we realized we couldn’t achieve the necessary growth organically, so we began to search for the best partner to deliver what our members and the Napa community deserved,” Crawford said. “Community First, because of its focus on members and the community, its technology prowess, and its proximity in contiguous Sonoma County, was seen as a perfect fit for our members.”
Although Health Care Professionals FCU had been increasing its assets since 2009, from $4.9 million to $5.5 million in 2012, it has struggled with net income losses of $210,474 in 2011, and another $206,213 in net losses as of September 2012, according to financial reports filed with the NCUA.
The merger is expected to be completed by Dec. 1.
The $72 million State Center Credit Union also has been losing money, only much more. Between 2008 and 2011, State Center CU has posted net income losses of $3 million, and has lost an additional $152,025 through September 2012, according to financial reports filed with the NCUA.
There has been no word yet, however, on when State Center CU’s merger into Valley First CU is expected to be complete.