Two Large LA CUs Say Merger Driven ByMarket Conditions

HAWTHORNE, Calif. - (12/16/02) Two credit unions in greater LosAngeles, each at more than $400-million in assets, said they aremerging because it's the only way they can remain competitive inthis market. The $464-million Western Federal Credit Union and the$470-million TRW Systems FCU plan to complete a merger by the endof 2003. Christine Klein, a spokesperson for TRWSFCU, told TheCredit Union Journal the move is necessary to compete in L.A. "Itwas getting more difficult to do things," she said. "We felt likewe needed more size and scale to do things for our members." Askedwhat the implications are for the hundreds of smaller CUs–insome cases many times smaller– if a $470 million credit unionfelt it wasn't "big enough," Klein said the answer depends on thecircumstances each individual institution faces. The name of themerged institution will be Western FCU, but the continuing charterwill be that of TRW Systems FCU.