Another Troubled Las Vegas CU Merged Out
LAS VEGAS – SONEPCO FCU, an ailing $60 million credit union here, has agreed to be acquired by California’s SCE FCU, the latest troubled Nevada credit union to be eliminated.
SONEPCO, which reported a $1.6 million loss for the first quarter and net worth of just 4.2% at March 31, shares a common bond with the $500 million Irwindale, Calif., credit union, with both serving the electric power industry. SONEPCO serves Nevada Energy and SCE was chartered to serve Southern California Edison and is now serving all of southern California.
The deal will give the California credit union three branches in Nevada and follows similar out-of-state credit union entries into the Silver State, including Utah's America First FCU's acquisition of Community One FCU; Michigan's United FCU's deal for Clearstar Financial FCU, Illinois' Credit Union 1's deal for Cumorah CU and Texas' InTouch FCU's acquisition of Ensign FCU.
Members from SCE FCU and SONEPCO board of directors have approved the merger. SONEPCO members will become members of SCE FCU and Sue Longson, SONEPCO’s CEO, will assume a senior management position based in Las Vegas with SCE. “Joining SCE FCU is a natural progression for us,” said Longson. “We share a common history of serving employees at energy companies.”
Las Vegas credit unions have been among the hardest hit by the financial crisis and the state’s depressed economy, with five of the state’s biggest credit unions having failed over the past two years.