EL CENTRO, Calif. — Palm Springs Federal Credit Union said it intends to merge into Sun Community Federal Credit Union, here, which would create a combined credit union with $325 million in assets, $36 million in capital and more than 36,000 members.
The agreement to merge has been approved by the boards of directors of both credit unions. Approval is pending from federal regulators, as well as Palm Springs FCU's members.
If all approvals come in as expected, the anticipated merger date is May 1.
The staff of Palm Springs Federal Credit Union will join Sun Community's team. One member of Palm Springs FCU's board of directors will join Sun Community's board "to ensure the new market area is represented," the two CUs said.
The proposed merger would link two of Southern California's most-populated inland desert areas. Sun Community's headquarters, main office and operations center will remain in El Centro, in the Imperial Valley. Palm Springs FCU currently is the only credit union headquartered in the Coachella Valley.
Palm Springs FCU will create an advisory board to provide input into Sun Community's future expansion into Coachella Valley, the two CUs said.
"This merger will combine the strengths of two financially strong credit unions and allow us to expand into the Coachella Valley, growing our membership and increasing services for our members," Dale Johnson, Sun Community FCU's CEO, said in a statement.
Johnson said Sun Community FCU remains "committed to the Imperial Valley," adding the CU plans to expand its local service to include a new express branch inside the Imperial Valley Mall in the near future. "Sun Community is the most convenient financial institution in Imperial Valley with seven branches and 14 ATMs available to our members," he said.
"We believe that by merging with Palm Springs Federal Credit Union, we can expedite our growth and better serve our collective membership," Johnson added.
'Very Challenging'
Palm Springs FCU was chartered as Palm Springs City Employees FCU in 1957. In 2008, the credit union changed its name to Palm Springs FCU. Today, Palm Springs FCU has assets of $13 million and serves more than 1,600 members.
According to Debbie Pitigliano, Palm Spring FCU's CEO, "Palm Springs Federal has been in business for 57 years. The past several years have been very challenging for us to offer the products and services our members have come to expect and deserve. With our limited field of membership, we find ourselves in a position where it would be in the best interest of our members to merge with another credit union. This will allow us the freedom to expand our services, potentially open additional branches in the Coachella Valley, and grow our membership. Together we are better!"
Pitigliano said she will continue to work with Sun Community as a regional vice president, "to make sure our members' needs and concerns are addressed."
Sun Community FCU has assets of $312 million, capital of $35 million and serves more than 34,000 members. Membership is open to anyone who lives, works, worships or volunteers in Imperial County.
