Canyon State Credit Union to scoop up another Phoenix-based institution
Competitive pressures have pushed Southwest HealthCare Credit Union to merge into Canyon State Credit Union.
The $15 million-asset Southwest HealthCare CU elected to seek out a merger partner because it was facing “increased competition from non-traditional companies, other out-of-state financial institutions, increased need for digital strategy and new federal laws and regulations,” Colleen Curtis, president and CEO of Southwest Healthcare, said in a press release on Monday.
Southwest HealthCare has roughly 1,800 members and one branch while the $435 million-asset Canyon State has about 37,000 members and eight branches. Both institutions are headquartered in Phoenix, Ariz.
The deal still needs to be approved by Southwest HealthCare’s membership. A vote is currently scheduled for May 20.
“We believe that this partnership will be mutually beneficial, and will provide even greater options to their membership,” Robb Scott, CEO of Canyon Sate, said in the press release. “We are looking forward to welcoming them into our family and expanding our branch network to better serve all of our members throughout the Phoenix and Payson area. We are committed to investing in our partnership and our community for years to come.”
Last year, Canyon State and Deer Valley Credit Union in Phoenix merged in what they called a “collaborative merger.” Scott led Deer Valley at the time and became CEO of Canyon State after the merger.
Canyon State reported income of $2.1 million in 2019, more than five times its earnings from a year earlier, according to call report data.
Southwest HealthCare lost about $79,000 last year, compared with earning roughly $6,400 in 2018.