"We recognize merger critics may point to our healthy capital and ask why we didn't just opt to go it alone. That was of course the first consideration. But the reality is, we do the same things for the same reasons so why not eliminate redundancy and grow faster and better together," Michael Duffy, president/CEO of Financial Center, said in a prepared statement. "On our own it would take years to develop and implement while still having the challenges scale, so why not give members more and build the organization for the next decade at the same time. Together with Valley Strong, it's a win-win, because members are the focus, and we will be able to serve even more people throughout San Joaquin and the state of California."

Even though Financial Center is well capitalized, ending the second quarter with a net worth of 16%, compared to its peer net worth average of 10%, the credit union has seen gradual declines in loans and members over the last five years, its NCUA financial performance reports showed.

Though Financial Center grew its assets from $457 million in 2016 to $607 million by the end of 2020, its total loans declined from $176 million in 2016 to $125 million in 2020, according to NCUA financial performance reports. While its membership grew by nearly 2% in 2016, its membership fell by more than 4% in 2020, NCUA financial reports showed.

In 2021, Financial Center's total loans were $117 million in the first quarter compared to $155 million in the first quarter of 2020, and $108 million in the second quarter of this year compared to $149 million in the second quarter of last year, according to NCUA financial performance reports. Total assets were $635 million in the first quarter of this year compared to $538 million in assets at the end of last year's first quarter, while total assets amounted to $643 million at the end of this year's second quarter compared to $578 million in the second quarter of 2020, NCUA financial performance reports showed.

Financial Center's membership also fell by 2.68% and 3.05% in the first and second quarters of this year, respectively, compared to 2.96% and 4.59% membership declines at the end of the first and second quarters in 2020, respectively, according to NCUA financial performance reports.

The combined financial cooperative will operate under the Valley Strong name, with President/CEO Nicholas Ambrosini leading the credit union. Duffy will become the chief advocacy officer for Valley Strong.

Chartered in 1954, Financial Center became the largest credit union based in San Joaquin County.

In a prepared statement, Ambrosini said the combined organization will be committed to maintaining a cooperative mindset.

"I recently shared a thought leadership piece about my journey as CEO of Valley Strong. In it, I talked about my belief that credit unions are uniquely positioned to address the challenges of an increasingly fractured financial landscape," Ambrosini said in a prepared statement. "By our very nature – and charter – we can lean into social issues and engage members in ways that improve their lives. I am steadfast in my belief that mergers, when done for the right reasons, are one strategy that allows us to deliver ultimate value to members, communities and team members. Our strategic partnership with Financial Center is grounded in a human-centered, collaborative, democratic approach."