Another small credit union says it is looking to merge due to increased regulatory burdens, as $26.8 million Santa Cruz County Employees CU, Santa Cruz, Calif., has entered into a merger agreement with $704 million Bay FCU.
Both CUs said their boards of directors have unanimously approved the merger agreement and will seek regulatory approval by applying to NCUA and the State of California. As the credit union potentially merged out, a vote by Santa Cruz County Employees CU members is required.
The CUs estimate the merger will be complete in late 2014.
SCCECU serves 2,590 members with one branch location and one ATM. Bay FCU of Capitola, Calif., currently has 55,468 members, seven branch locations, 22 proprietary ATMs and surcharge-free access to more than 30,000 ATMs nationwide through the CO-OP Network.
In its December 2013 call report, Bay FCU had $5.9 million in net income for the year, after assessments. Its net worth ratio was 7.20% ("well capitalized").
In 2013 SCCECU scratched out $22,520 in net income from operations, but after paying $19,556 to the Temporary Corporate CU Stabilization Fund it was left with just $2,964 in net income. Its net worth ratio was 7.02% ("well capitalized").
Friends & Partners
"Our friends at Bay Federal Credit Union have been a great partner over the years," Trey Dunbar, Santa Cruz County Employees CU’s president and CEO, said in a prepared statement. "The regulatory environment has changed to the point that it is costly and difficult for small credit unions such as Santa Cruz County Employees Credit Union to compete. The merger opportunity with Bay Federal Credit Union enables us to provide enhanced services to our membership. Its focus on providing excellent member service, active community involvement, and collaborative culture are a natural fit for our members, who always come first."
Carrie Birkhofer, president and CEO of Bay Federal Credit Union added, "We are excited to pursue this merger opportunity with Santa Cruz County Employees Credit Union. Both organizations started as a vision of a few co-workers who pooled their financial resources together to help one another in the 1950s. We believe this partnership will be mutually beneficial, and will provide even greater options to our collective membership. We are looking forward to welcoming Santa Cruz County Employees Credit Union members into our family."
