BROOMFIELD, Colo. — Members of Boulder Municipal Employees Federal Credit Union voted to approve a proposed merger with Community Financial Credit Union, here, to create a CU with more than 18,000 members and $200 million in assets.
The two CUs currently are one-branch credit unions in their home cities of Boulder and Broomfield. They said a third full-service branch in Broomfield is expected to open in early 2015.
The proposed merger already has regulatory approval by both the State of Colorado Division of Financial Services and NCUA. The merger is expected to become effective sometime this fall.
In its most recent call report, $151 million Community Financial CU listed $969,607 in net income for the first half of 2014. Its net worth ratio as of June 30 was 13.17%, making it well capitalized.
In 2013 Community Financial had more than $1.1 million in net income, after paying $95,681 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 12.98%, making it well capitalized.
In the first half of 2014 $64 million Boulder Municipal Employees FCU reported $153,958 in net income. Its net worth ratio as of June 30 was 7.66%, making it well capitalized.
Last year Boulder Municipal EFCU had $64,318 in income from operations, but after paying $44,756 to the Temporary Corporate CU Stabilization Fund was left with net income of $19,562. Its net worth ratio was 7.58%, making it well capitalized.
According to Ann Babiak, president and CEO of Boulder Municipal Employees FCU, the combination represents a "unique" partnership.
"We are both viable, well-capitalized credit unions coming together to create economies of scale, long-term sustainability and to offer additional locations to help meet the financial needs of our members," Babiak said in a prepared statement. "At the end of the day, our members spoke loud and clear about their desire to see the merger happen. We are excited about the future of Community Financial Credit Union and the opportunity to serve the financial needs of our membership."
Community Financial CU noted it has a loyalty program referred to as Relationship Rewards and an annual Member Bonus dividend which has returned more than $1.8 million in earnings to members in the last six years.
"We see this as an opportunity to combine resources with a credit union with similar values and vision. The result will be a partnership that delivers more value to all its members and we are truly excited about the future," said Greg Hill, president and CEO of CFCU.
The combined credit union will operate under a community charter serving Broomfield and Boulder counties, plus municipal employees, volunteers and members of more than 60 select employer groups.
