Two Utah credit unions – Ogden-based Goldenwest CU and Health Care CU in Salt Lake City – on Thursday announced their intent to merge.
The proposed merger is subject to approval from federal and state regulators. The merger plan will go to members of Health Care Credit Union for an official vote "in the coming weeks," the two CUs said in a statement.
If all approvals are received, the merger is expected to be completed in the first quarter of 2017.
The combination of $1.2 billion Goldenwest and $75 million HCCU would create "greater branch convenience" for the two memberships, the two parties said. Currently, Goldenwest operates three branches in Salt Lake County, with locations in Sandy, South Jordan and Herriman. A fourth branch is under construction in the Highlands shopping development in West Jordan. The merger would add eight Salt Lake County offices to the Goldenwest branch network.
Across the Beehive State, the new CU would have 36 locations from Logan to St. George serving approximately 120,000 members.
"As both credit unions are deemed financially secure, the merger is considered strategic in nature," they said Thursday.
"This merger will provide Health Care Credit Union members with the best financial products and services available in the market today and into the future," said Scot Baumgartner, president and CEO of Health Care CU. "In particular, we are excited to significantly increase our technology-based services through Goldenwest's popular online and mobile banking platforms."
"As the board considered several partners for a merger, we searched for a credit union with a strong commitment to providing high value for its members," said Randy Evans, chairman of the board for Health Care CU. "We are confident that Goldenwest will offer Health Care Credit Union members quality products and top-rated service."
Kerry Wahlen, Goldenwest CU's president/CEO, said Health Care Credit Union members are not the only ones who will benefit from the merger.
"We are delighted for this opportunity to expand the Goldenwest branch footprint in Salt Lake County," stated Wahlen. "The merger complements our long-term growth strategy to better serve our members who live and work throughout the state of Utah."
"We believe this merger is favorable for both credit unions," said Bill Hart, chairman of Goldenwest. "We enthusiastically welcome Health Care members to our credit union family, and invite Goldenwest members to enjoy the convenience of the additional branches in Salt Lake County."
Goldenwest Federal Credit Union was founded in 1936. It currently holds $1.2 billion in assets, serves more than 112,000 members and operates 28 branches with offices in Cache, Box Elder, Weber, Morgan, Davis, Salt Lake, Utah and Washington counties.
Health Care Credit Union was established in 1950 at LDS Hospital, and is headquartered in Salt Lake City. HCCU holds $75 million in assets, serves 7,600 members and operates eight branches.
