ALAMEDA, Calif. Alameda CU, a one-time $43-million community credit union, has agreed to merge into nearby Provident CU, a $1.8-billion credit union in nearby Redwood.
Alameda, a 76-year-old credit union that was originally chartered to serve municipal employees before converting to community charter in 1997, has reported losses for four straight years and assets of just $34 million at March 31.
In a letter to members, the credit union’s board and management said they sought a merger to fund technology for members, provide more and cheaper loan options, offer a broader array of services and address rising overhead costs and increasingly complex regulations, which they said are posing “a large and growing burden” for smaller credit unions. The letter said the credit union’s leaders worked with a consultant for months and spoke with “many potential merger partners” before deciding on Provident.
If the merger goes through, Alameda Credit Union’s members would become Provident CU members.
