California credit unions, "face a longer road to recovery" than the rest of the country because of the combined problems of a poor economy, higher taxes and now a state budget impasse, according to the president/CEO of a mid-sized Los Angeles CU.
Commenting on California mergers, Dave Gunderson, head of the $575 million Credit Union of Southern California of Brea, maintained the industry is managing the crisis in relatively good form but big challenges remain.
He said CUs like his continue to be approached by regulators, consultants and CEOs about merger prospects, "and interestingly it isn't just the very weakest that are showing interest, but the healthy ones which see benefits in gaining more branches, longer hours and higher levels of service to their members."
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The last merger for CU of Southern California was in 2003 "but now we have some active discussions under way," declining to identify any of the parties or motivation. Gunderson stressed any CU expansion via merger being talked about is "not just for growth sake," but where there is real member advantages.
Earlier this week the $7 billion Golden 1 of Sacramento said it was making plans to merge the $105 million U.S. First CU of San Francisco with another smaller consolidation completed by Camino CU of Montebello with ALISOS CU of Norwalk.
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