Members of Canoga Postal Federal Credit Union will soon vote on whether to merge into Gain Federal Credit Union, both of which are based in the Los Angeles metro region.
Canoga Postal has assets of less than $1 million and serves fewer than 175 members, according to data from the National Credit Union Administration, while Gain FCU holds assets of nearly $413 million and serves over 21,000 members.
The deal would provide Canoga Postal members with an expanded slate of products and services, including online banking, as well as additional branches. A member vote is scheduled for Jan. 25 and the credit union’s only location is expected to close on Jan. 31. In part because Canoga Postal has a higher net worth than Gain FCU, the credit union will distribute a $17,000 bonus dividend to members as part of the deal.
A notice to CPFCU members said the board determined a merger was in the institution’s best interest because Manager Barbara Selkirk is retiring. Small credit unions frequently struggle with succession planning, and mergers when CEOs retire are not uncommon.
Canoga Postal lost more than $5,700 during the first three quarters of the year, compared to about $200 in losses during the same period last year.
The deal is the second postal credit union merger to be announced in a month, following Madison, Wis.-based Post Office CU’s agreement to merge into Pentagon Federal Credit Union. At least five postal credit unions have been absorbed in mergers in the last two and a half years.
