BREA, Calif. — Members of the $130 million South Western Federal Credit Union voted "overwhelmingly" in favor of merging into the $781 million Credit Union of Southern California, all but finalizing the union of the two CUs.
The merger will create a CU with nearly $900 million in assets and 13 branches that will serve more than 70,000 members throughout Los Angeles County and Orange County, as well as the cities of Chino, Chino Hills, Ontario and San Bernardino.
All systems of the two CUs are expected to be integrated by Oct. 1.
Dave Gunderson, president and chief executive of CU SoCal, will be president and CEO of the newly combined organization.
As reported
All branches will remain open, and all employees of CU SoCal and South Western will continue to be employed following the merger.
The two CUs said that members of the soon-to-be former South Western will enjoy greater convenience and a broader portfolio of products and services, including 11 additional branch locations, second-chance mortgage loans, investment services and commercial lending.
"CU SoCal is an outstanding organization, and we could not be more excited about a shared future," Poore said in a statement.
"This partnership brings our members many immediate benefits including access to longer member service hours and expanded product offerings, with the same friendly, personalized and efficient service we've had for 77 years. In addition, this partnership also creates a bright future for all employees," Poore said.
"Culture is a critical component to the success of any partnership," she said.
"We both share a commitment to building better lives for our members, employees, and residents in the communities we serve," Poore said. "A combined credit union will allow us to strengthen our commitment and provide more opportunities for the members and employees of both credit unions."
Financial Situation
Founded in 1954 as Whittier Area Schools Federal Credit Union, CU SoCal has a five-star financial rating from independent research firm BauerFinancial Inc. in Coral Gables, Fla.
In its most recent call report, CU SoCal had more than $5.7 million in net income for the first half this year. Its net worth ratio as of June 30 was 13.38%, making it well capitalized.
Last year CU SoCal had more than $4.6 million in net income, after paying $476,431 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 13.47%, making it well capitalized.
South Western was chartered in 1937 by employees who worked in the Sears Catalog Division.
South Western reported a first-half loss of $153,904. Its net worth ratio as of June 30 was 9.07%, making it well capitalized.
Last year, South Western reported a loss of $636,275, including paying $82,997 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 9.11%, making it well capitalized.
In 2012, South Western had $170,396 in net income, after paying $100,935 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 9.12%, making it well capitalized.
