Credit Unions Announce 4 New Mergers
Credit unions in Colorado, California and Washington plan to finalize mergers later this year, and a Pennsylvania credit union that served employees who made Harley Davidson motorcycles recently finalized its consolidation.
The $65 million, 6,822-member Boulder (Colorado) Municipal Employees FCU said it plans to merge with the $150 million, 11,906-member Community Financial CU in Broomfield, Colo., according a joint statement Tuesday.
The merger is expected to be completed in the fall pending regulatory approvals and a vote by BMEFCU members.
“We believe that this is the right decision at the right time and for the right reasons,” Ann Babiak, president/CEO of BMEFCU, said in a statement. “There is tremendous competition in our industry and this move will allow us to grow and ensure long-term value for our members.”
In addition to maintaining two branches in Broomfield and Boulder, a third branch is scheduled to open in Broomfield by late 2014.
Chartered in 1965, BMEFCU serves employees, volunteers and members of more than 60 employee groups and municipalities throughout Boulder County.
In California, the $27.6 million, 2,556-member Santa Cruz County Employees CU said it plans to merge with the $703 million, 55,595-member Bay Federal Credit Union in Capitola later this year.
Tonée Picard, executive vice president and chief development officer for Bay FCU, said the credit unions will submit their merger applications to NCUA next week. A membership vote of Santa Cruz County Employees CU will be held at a later date.
“The regulatory environment has changed to the point that it is costly and difficult for small credit unions like Santa Cruz County Employees CU to compete,” Trey Dunbar, president/CEO of Santa Cruz County Employee CU, said. “The merger opportunity with Bay Federal Credit Union enables us to provide enhanced services to our membership.”
Chartered in 1953, Santa Cruz County Employees CU serves the financial needs of employees of governmental agencies in Santa Cruz County and other local non-profit groups.
On Aug. 1, the $9.5 million, 1,266-member Central Washington University FCU in Yakima said it will merge with the $2 billion, 204,300-member Washington State Employees CU in Olympia, according to a CWUFCU prepared statement.
CWUFCU said with diminishing loan and revenue growth, its board of directors believed it was in the best interests of their members to find a merger partner.
“We were seeking a credit union partner that had strong financial stability, a history of serving higher education employees and an outstanding reputation for member service,” Barbara Hodges, CWUFCU board chair, said in a statement. “After seven months of vetting, WSECU was selected as the right partner by the board and a vote by our members endorsed that decision.”
Once the merger is complete, WSECU will open a new branch in Ellensburg that will primarily serve CWUFCU members.
CWUFCU has served employees and retirees of Central Washington University since 1962.
On May 31, the $2.7 million, 701-member Harley-Davidson York Federal Credit Union in York, Pa., merged with the $63 million, 9,987-member White Rose Credit Union, also based in York, according to a statement on White Rose CU’s website.
The merger was approved by the Pennsylvania Department of Banking and Securities in April.
Chartered in 1957, HD York FCU served the financial needs of employees of the motorcycle manufacturer.