The merger of the $83 million, 5,911-member ChevronWest Credit Union of Bountiful, Utah into the $2.2 billion, 91,747-member Chevron Federal Credit Union of Oakland, Calif., is set to be completed Oct. 31 after receiving recent approval by a vote of the ChevronWest CU members.
The merger will add two branches in Utah and one in Colorado to Chevron FCU's existing locations in California, Texas, Louisiana, Mississippi, Maryland and Virginia, according to a Chevron FCU statement.
The merger has been approved by the Utah Department of Financial Institutions and the NCUA.
ChevronWest said the merger was necessary because of “increasingly extensive regulations, rising compliance and security costs, and shrinking interest rate margins have made it difficult” for the credit union to fulfill its mission.
In addition to declining loan income revenue, ChevronWest also has seen its net income drop from $1.1 million in 2010 to $480,474 in 2012, according to NCUA financial performance reports.
ChevronWest was founded in 1950 as the Standard Credit Union to serve the financial needs of employees at the Chevron refinery in North Salt Lake, Utah. That refinery was part of ChevronWest Oil, the Mountain West division of Standard Oil of California. The credit union changed its name to ChevronWest in 1974.
"ChevronWest has shared our dedication to serving the financial needs of Chevron employees, and we are very pleased to welcome their members to our organization," said Chevron FCU President /CEO Jim Mooney. "Our goal is to continue providing them with the personal service they expect, but with the economic efficiencies and technological capabilities of a much-larger organization."