STOCKTON, Calif.–Members of FinancialCenter Credit Union have voted in favor of merging into Valley Strong Credit Union in Bakersfield, with the CEO of one of the CUs—which has 16% capital–issuing a statement on why it felt it couldn’t “go it alone.”
Of the 11% of the $644-million FCCU members who cast ballots, 86% voted “yes,” FCCU reported. The merger is scheduled to be completed on Oct. 1.
Combined, the organization will operate under the Valley Strong name with VSCU President/CEO Nicholas Ambrosini leading the credit union. The combined CU will have approximately $3.5 billion and will serve more than 210,000 members with 27 branches throughout the San Joaquin Valley from Lodi to Tehachapi, Calif. Two additional branches are expected to open before the end of the year.
In a financial services sector that is constantly evolving, this merger is a true embodiment of the credit unions industry’s cooperative mindset,” said Michael P. Duffy, president/CEO, of Financial Center Credit Union. “At its core this is about a collective mindset that allows us to achieve our goals faster than we could duplicate on our own. 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? 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?”
Financial Center CU reported net income of $1.039 million through mid-year with very high capital of 16.03%.
‘Uniquely Positioned’
“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,” said Ambrosini. “By our very nature – and charter – we can lean into social issues and engage with 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.”
Valley Strong reported net income of $12.1 million at mid-year with capital of 8.71%.