The $934 million Elevations Credit Union of Boulder. Colo., is expanding its reach across the state's Front Range by making plans to merge with the $20 million Longs Peak Credit Union of Loveland, which had been until recently under a cease and desist order to restore its net worth.
The planned consolidation, subject to approval of regulators and a member vote, would become effective June 1 and create a nine-branch CU to include Boulder and Broomfield counties.
Lisa Cortese, president/CEO of Longs Peak, said the first quarter has been profitable for the Loveland CU, which decided on seeking out a merger partner last January to provide broader services to its 4,000 members. The credit union lost $960,000 in 2009.
Longs Peak, founded in 1953, has maintained 8.99% capital ratio and ROA of 3.8%, said Cortese, noting that the CU sought out Elevations for the proposed merger.
Gerry Agnes, president/CEO of Elevations, said his CU has enjoyed robust and record growth over the last year "after we made some changes in 2008." Its capital ratio has been at 8.5% and ROA of 1.54%.
He said there are no further plans for additional Colorado mergers, "but we are always open to opportunities."
Despite the cease and desist order, "we were not under any orders to merge, and we were proactive in picking our own partner," said Cortese.