MADISON, Wis. (5/9/14)--Seasons mean change, and for some credit unions, this spring season means a merger with another credit union.
In California, the boards of South Western FCU, La Habra, with $132 million in assets, and CU of Southern California (CU SoCal), Whittier, with $710 million in assets, approved a merger. Pending approval by regulators and members, the resulting credit union will have about 75,000 members and retain all its branches. CU SoCal President/CEO Dave Gunderson will remain president, while South Western FCU's President/CEO Laura Poore will serve in an advisory role. "In planning for the future, both credit unions realized that a combined organization will bring greater strength and competitive advantages moving forward than either credit union had on its own today," Gunderson said.
Garden Savings FCU, a $280 million-asset credit union in Parsippany, N.J., and Essex Division Telephone FCU, Maplewood, N.J., announced plans to merge effective May 31 (The Daily Exchange May 8). The credit unions will continue to operate under the name of Garden Savings and operate full-service branches in six different New Jersey locations. "Our members will be delighted with the added convenience now available to them," said Essex Division President/CEO Frank Maniscalco, while Garden Savings President/CEO Lou Vetere noted the serving the Maplewood area will help expand its overall presence in northern New Jersey.
According to its CEO, regulatory requirements and the associated costs were "part of the motivation" for the merger between Resources FCU, Richmond, Va., with $17 million in assets, and Petersburg, Pa.-based Peoples Advantage FCU, with $52 million in assets. Patsy Smith, CEO of Resources FCU, said the merger helps the smaller institution better deal with rising regulatory costs (Richmond BizSense May 8). Smith will stay on as CEO of the combined credit union, which will retain the Peoples Advantage brand. Peoples Advantage's CEO Audrey Bollinger retired April 30.
On Wednesday, the boards of DuTrac Community CU, Dubuque, Iowa, with $571 million in assets, and School District 40 Employees CU, Moline, Ill., announced plans to merge (Telegraph Herald May 8). After regulator and member approval, the combined entity will continue to be called DuTrac Community CU with Andrew Hawkinson as president/CEO. The merger "has tremendous potential to bring our members much more through the combined deposit and capital base and economies of scale available through a larger organization," said Mike Daly, board chair for $15 million-asset School District 40.
The members of Grove Community FCU, Greencastle, Pa., voted Saturday in favor of the approved merger with $1.03 billion-asset Corning (N.Y.) FCU. Ninety-six percent of the members in attendance voted in favor of the merger, set to occur this summer (ChambersburgPublic Opinion May 6). All Grove Community employees will join Corning, which is the remaining entity, and its current branch will remain open.