LACEY, Wash.–Two billion-dollar-plus credit unions in the Pacific Northwest have announced plans to merge.
The $2.2-billion TwinStar Credit Union in Lacey, Wash., and the Eugene, Ore., and the $1.83-billion Northwest Community Credit Union, headquartered 227 miles south in Eugene, Ore., said they are seeking to merge pending regulatory approval and NWCU membership vote.
If approved, credit union locations would continue to be designated as “Northwest Community Credit Union Branch” or “TwinStar Credit Union Branch” while they work to create a new, common brand, the credit unions reported.
The combined CU would have more than 245,000 members and 36 branches in the two states.
“With a competitive physical presence and their combined strengths in product, services, and technology offerings, this merger is a great example of the impact credit unions can have when they pursue a cooperative partnership with a like-minded organization,” the CUs said in a joint statement.
“My hope is that as the merger process continues, our members, employees, and the communities we serve are excited about the additional opportunities this partnership would allow us to provide those we serve,” said NWCU CEO John D. Iglesias. “We put thoughtful care, consideration, and months of due diligence into this to ensure a merger with TwinStar made sense, and at every step, it has. The vision for the future of both credit unions’ boards of directors is 100% aligned.”
‘Pretty Amazing’
Added TwinStar CEO Jeff Kennedy, “I think it’s pretty amazing that two like-sized, like-minded credit unions are coming together collaboratively. People have asked, and are going to continue to ask us, why merge? To be frank, it goes beyond just one reason. It’s because we would gain economies of scale; it’s because we’d grow to 36 branches across two states; it’s because with that growth comes more opportunity. Ultimately, however, we are pursuing this merger because we believe we can provide more member, employee, and community value together and we’ve found a great partnership.”
Plans call for Kennedy to be CEO of the merged institution, while Iglesias would be president. The merged CU would operate under TwinStar’s Washington state charter.
If NWCU members approve, the credit unions said the merger would be completed sometime in 2023.
History & Performance
TwinStar, which was established in 1937 by teachers at Olympia High School as Thurston County Teachers Credit Union, reported $6.097 million in net income in the first quarter with capital of 9.41%.
Northwest Community CU, founded in1949 by six members of Weyerhaeuser, reported $2.45 million in net income and capital of 9.16% as of the same date.