DUBLIN, Calif.–Credit unions in California and Minnesota have announced separate merger plans.
If approved by members in a Sept. 14th vote, the $74-million Chabot FCU in Dublin, Calif. said it will merge into the $920-million University Credit Union in Los Angeles. The combined CU will have approximately 46,000 members.
Both credit unions serve the higher education community, with the CUs saying in a statement, “the merger is significant for its expansion of financial services and support to university and college campus communities across the state of California.”
Chabot Federal said it began searching for a prospective partner in 2020, and that UCU’s “dedication to its members, the extensive breadth of their traditional and electronic services, and its historical success serving college communities made it an obvious best choice.”
University FCU earned $1.86 million as of June 30. Chabot FCU reported a loss of $31,000.
‘Mirrors Our History’
“We hope to combine our resources with a credit union that mirrors our long history of helping people achieve their financial goals,” said Chabot FCU CEO Christine Petro. “This proposed merger will allow us to maximize our efficiencies, enabling us to enhance products and delivery channels to our members, while retaining our entire team, our programs and services, and our existing location.”
Added Dr. David Tuyo, CEO of University CU, “We are proud and excited to have CFCU join us in this marquis partnership. The combined entity will enable our team to provide more accessibility to a suite of comprehensive financial services for all members, as we unite to ensure that university and college communities are fully supported in all areas of financial concern.”
If approved by Chabot FCU members, the merger is anticipated to be finalized by Q4 of 2021.
Minnesota Merger
Meanwhile, Keewatin, Minn.-based Central Hanna Employees CU said its members have voted in favor of merging into SPIRE Credit Union in Falcon Heights, Minn., effective September 1, 2021.
The $4.2-million CHECU has approximately 624 members. The credit union reported a loss of $8,200 at mid-year, but it has 17.28% capital.
The $1.7-billion SPIRE Credit Union has approximately 137,500 members.
In announcing the merger, the credit unions said co-founders Willie Traeger and Elmer Kettunen organized CHECU in 1957 to serve the employees of Hanna Mining Company, which is now U.S. Steel.
“For many years, they operated a small office within the United Steelworkers Union Hall,” the CU shared. “In 2012, the credit union expanded from an employee-based to a community-based charter, and moved into their current location, a historic early 1900s brick building that originally housed Keewatin’s first bank.”
Added Kathleen Bottoms, a board HECU board member, “When I got my first job, my Dad told me to open an account at the credit union. They gave me my first loan when I was in high school, and my Dad had to co-sign. I bought a 1964 Plymouth, and took a loan for $1,950.”
“We are excited to serve the residents of Keewatin and the surrounding areas,” said Dan Stoltz, SPIRE president/CEO, “We are eager to roll up our sleeves and begin work to honor this community, and its 115-year history. Our partnership is a triple win: a win for our employees,