The $33 million Fort Bragg Community Federal Credit Union in Fort Bragg, Calif., recently signed of memo of understanding to merge with the $126 million Mendo Lake Credit Union in Ukiah, Calif.
“The cost associated with offering the variety of services Mendo Lake Credit Union will be able to offer is much more than a smaller credit union of our size can undertake,” Pamela J. Merritt, FBCFCU CEO/president wrote in a statement to the credit union’s 4,748 members.
“The merger of our two credit unions will keep the local credit union ‘feel’ that is so very important to our members and community,” Merritt wrote.
After the merger is completed on Sept. 30, 2013, Merritt said, she will retire. Jill Lydick, the assistant manager of FBCFCU, will be staying on with MLCU in a senior branch management position. Every effort will be made to keep as many of the remaining half dozen FBCFCU employees, according to the credit unions’ joint statement.
“This may be small scale in the terms of big banks – but it is a huge opportunity for MLCU to grow and achieve more economies of scale by adding the members, deposits and loans of FBCFCU,” Richard Cooper, president/CEO of MCCU, said in a statement to his 18,528 members. “And it is an honor that they (FBCFCU) would consider MLCU as a partner at this time.”