Darigold Federal Credit Union has taken the first steps to merge into Sound Credit Union, pending regulatory approval and a vote by Darigold's members.
Darigold FCU, based in Shoreline, Wash., just north of Seattle, has $4.9 million in assets and 1,137 members. Sound CU in Tacoma has nearly $1.1 billion in assets and serves 97,507 members.
The two credit unions on Thursday said their boards have unanimously approved a merger agreement. If the deal goes through, the expanded Sound CU would have a total of 21 branches located throughout Pierce, Thurston and King counties.
A spokesperson for Sound CU told Credit Union Journal the two institutions expect the merger to be completed around late October. The two CUs are waiting for NCUA approval before setting the Darigold member vote, but expect that to take place in June or July.
"Darigold FCU is a strong, stable credit union," said Richard Brandsma, president and CEO of Sound CU in a statement. "We are excited for this opportunity, and look forward to serving the members of Darigold Federal Credit Union."
Donna Subera, president and CEO of Darigold FCU added, "We are excited to pursue this merger opportunity with Sound. Our members will enjoy an extensive branch network and access to technology such as mobile check deposit that will make their banking life easier."
In its most recent call report, Darigold FCU said it lost $114,785 in 2013, including assessments. Its net worth ratio was 18.83% ("well capitalized").
In 2013 Sound CU reported $17.6 million in net income, even after paying $731,242 to the Corporate CU Stabilization Fund. Its net worth ratio was 12.43% ("well capitalized").
