LOS ANGELES – SCE FCU and First City CU on Friday announced they will combine to create an $800 million credit union, the latest in the accelerating consolidation of credit unions in this hard-hit market.
Unlike some other recent mergers here, both credit unions are healthy and are of similar size – SCE has $430 million in assets and earned net income of $1.3 million last year, while First City has more than $355 million and earned $3.5 million in 2007.
The merger will provide 13 branches throughout greater Los Angeles and parts of San Bernardino County. Dennis Huber, president of SCE, will head the newly created credit union, which will retain the First City name and state charter.
The merger follows by a few days an agreement by Patelco CU to acquire troubled Cal State 9 CU, which had more than $450 million in assets and 30,000 at one time.
In recent months, First Future CU and California Coast CU have agreed to combine to create a $1.8 billion San Diego-based credit union; and Western CU completed its merger with Toyota FCU, creating a $1.5 billion credit union.
Large mergers also are being engineered in other states: with Summit CU acquiring Great Wisconsin CU to create the state’s largest credit union; USA CU and T&C FCU combining to create Michigan’s fourth-largest credit union; and giant CommunityAmerica CU acquiring Midwest United CU, Missouri’s 10th-largest credit union.
