ANCHORAGE, Alaska/HUNTINGTON BEACH, Calif.–Two large credit unions in California and Alaska, respectively, have announced a plan to merge. The $1.6-billion Nuvision Credit Union and the $650-million Denali FCU said they plan to combine their operations to create a $2.2-billion CU serving more than 160,000 members.
The credit unions said the merger is pending approval by regulators and Denali members. Assuming all approvals are received, the credit unions said they estimate the merger will be finalized by the end of 2018, with integration planned for 2019.
“This proposed partnership will merge two independently successful, strong and well capitalized credit unions to create a significantly larger organization with increased operating efficiencies and an expanded market scope,” the credit unions said in a statement.
Under the Merger Agreement, Nuvision CEO Roger Ballard will become CEO of the combined credit union, while Denali CEO Bob Teachworth will head up all Denali branch operations in the Pacific Northwest. The merger plan calls for Nuvision to be the surviving charter, with current Nuvision branches continuing to operate under that brand. The Denali branch locations will retain the Denali FCU name and brand and become a division of Nuvision.
Combined, the credit union will have approximately 30 branches in Alaska, Arizona, California, Washington and Wyoming. A newly reconfigured board will include representatives from both CUs.
Plan Is to Build 'Regional' Credit Union
“We are excited about our proposed merger partnership with Denali Federal Credit Union,” said Ballard in a statement. “Each credit union is healthy and well-positioned in its respective markets, with shared values and an absolute commitment to serving members. This partnership offers the opportunity to collaborate and leverage our service, support and technology infrastructures to improve our members’ experience. From a long-term strategic perspective, joining forces will enable us to take another important step toward Nuvision’s vision of becoming a regional credit union, operating in multiple states across the Western United States. It also will enable us to better serve existing Nuvision members in Washington state. Beyond extending our market presence into the Pacific Northwest, the partnership will increase our asset size to bring significant economy of scale and efficiency benefits to our combined credit union.”
Denali’s Bob Teachworth added, “Merger partnerships have always been an important part of Denali’s long-term strategies to support our growth and service goals. The strength, stability and success of our credit union today is the direct result of the merging of a number of credit unions over the years, partnering together to better serve our collective members. Joining forces with Nuvision enables us to expand our branch network into new western markets to diversify our economic base, provide the resources to make long-term infrastructure and technology investments, and ensure we become much more competitive for the long term. It will also enable us to continue to meet member lending needs at competitive rates while still managing within regulatory limits as well as provide our team members with more opportunities.”