Coast-Tel Federal Credit Union, Salinas, Calif., on Wednesday said it has taken the first steps to merge into Bay Federal Credit Union, headquartered in Capitola, Calif.
The proposed merger is pending regulatory approval and a vote by members of Coast-Tel Federal Credit Union.
Coast-Tel FCU has just $20 million in assets. It serves 3,200 members from one branch and one ATM. Bay Federal Credit Union has $976 million in assets, serving its 71,000 members via six branches, 21 proprietary ATMs and surcharge-free access to more than 30,000 ATMs nationwide through the CO-OP Network.
Both CUs are on California’s Central Coast, near Monterey Bay. Coast-Tel FCU is in Monterey County, while Bay FCU is in Santa Cruz County.
Judy Meyers, longtime president and CEO of Coast-Tel FCU, recently announced her intention to retire after nearly 50 years of service. According to a statement from the credit union, Meyers’ planned departure, combined with the “increasingly complex and competitive financial services landscape,” led the credit union’s board of directors to seek a merger partner that would “best further the strategic objectives of the organization and enhance services for its members.”
On Wednesday, the boards of the two CUs said they each “unanimously approved” a merger agreement. The credit unions reported they have filed an application for the merger with the National Credit Union Administration. If approved, the merger proposal will be put to a vote to the members of Coast-Tel Federal Credit Union. If members approve the merger, the credit unions estimate the legal merger will be completed in early 2019, while the operational merger of accounts is expected to be finalized by mid-year.
“Our friends at Bay Federal Credit Union have been a great partner over the years,” Coast-Tel FCU’s Meyers said in a statement. “The merger opportunity enables us to provide enhanced services to our membership, with their long-term best interests in mind. Bay Federal’s focus on providing excellent member service, active community involvement, and collaborative culture are a natural fit for our members. Moreover, as a part of our intended merger agreement, the team at Coast-Tel will continue to serve our members at our branch location in Salinas.
“I am pleased to know that after personally serving my membership for nearly 50 years, my members and employees will be well served by the Bay Federal team,” Meyers added.
Bay Federal Credit Union was
“We are excited to pursue this merger opportunity with Coast-Tel Federal Credit Union,” said Carrie Birkhofer, president and CEO of Bay FCU. “Both organizations started as a vision of a few co-workers who pooled their financial resources together to help one another in the 1950s. This philosophy of ‘people helping people’ remains true and strong today and is evidenced in the work and collaboration among credit unions. I have had the distinct pleasure of working alongside Judy for several decades, and her passion for serving her members is unwavering and inspiring. We believe this partnership will be mutually beneficial and will provide even greater options to our collective membership. We are looking forward to welcoming Coast-Tel Federal Credit Union members into our family and expanding our branch network to better serve all of our members throughout the Salinas-Monterey area. We are committed to investing in our partnership and our community for years to come.”
In September 2014, $27 million-asset Santa Cruz County Employees Credit Union in Santa Cruz, Calif.,
