A large Southern California credit union has agreed to merge with a struggling, smaller credit union in its footprint.
Frontwave Credit Union in Oceanside, California, which has $1.3 billion of assets, plans to merge by the end of the year with Barstow Community Credit Union in Barstow, California.
The $6.5 million-asset Barstow Community lost $206,000 in 2021 after losing $205,000 the year before, according to call report data from the National Credit Union Administration.
And 2022 has not started off any better. Barstow lost $122,000 in the first six months of this year.
By comparison, Frontwave CU earned roughly $3 million in the first six months of 2022 (a 36% decrease from a year earlier).
Both credit unions serve the community of Barstow, and the combination will give members of Barstow Community Credit Union access to 13 additional branches.
"Having served the Barstow community for decades, we understand the unique needs these members have and are thrilled to be able to offer them even more solutions to help make their financial dreams come true," Frontwave Credit Union President and CEO Bill Birnie said in a press release.
All Barstow Community Credit Union employees will remain with the combined organization, Frontwave said.
