WHATCOM, Wash.–Two Washington credit unions, one of which has a net worth ratio of more than 25%, have announced a merger. Members of the $12.1-million Tesoro Northwest FCU have voted in favor of merging into the $338-million North Coast Credit Union.
Tesoro reported negative net income of $12,641 as of March 31, but a whopping net worth ratio of 25.72%. In the merger disclosure statement required by NCUA, Tesoro Northwest said itwill not distribute a portion of its net worth to its members in the merger, as the “Board of Directors has determined a share adjustment, or other distribution of Tesoro Northwest Federal Credit Union’s net worth is unnecessary.
The statement said there will be no additional compensation paid to Tesoro’s officials, CEO or the four most highly compensated employees as a result of the merger.
North Coast, based in Bellingham, Wash., reported net income of $334,393 as of March 31, with a net worth ratio of 9.91%.
Office to Become 6th Branch
Tesoro Northwest’s Anacortes location at 12543 Christianson Rd. will become the sixth branch for NCCU. In a statement, Tesoro Northwest said its members will benefit from the merger, gaining ability to access home mortgage loans, checking accounts and debit cards, plus the opportunity to obtain services at other North Coast Credit Union branches.
“This merger will provide us increased capital and financial strength, ensuring long-term sustainability,” said Marilyn Brink, president and CEO of North Coast Credit Union, in a statement. “Merging these two strong organizations will combine shared values and will provide members additional financial protection against future economic downturns.”
‘Strategic Reset’
Added Jeannie Potter, CEO of Tesoro Northwest, “It has become apparent in the last few years that TNWFCU needs a strategic reset to adequately meet the financial needs of our members. Merging with NCCU provides the best path forward to meet those needs.”
Tesoro Northwest FCU was chartered 1957 as the Anacortes Shell Federal Credit Union. In 1999 the credit union changed its name when the refinery was sold to the Tesoro.