California Credit Union and North Island Credit Union on Tuesday said their proposed merger has received regulatory approval, plus approval by a majority of North Island CU’s membership.
The merger will become effective March 1, with system integration planned for mid-May.
California Credit Union is based in Glendale, Calif., and has $1.6 billion in assets. It serves more than 88,000 members, many of them school employees, via 13 branches throughout the Los Angeles area. The $1.3 billion North Island has a community charter to serve all of San Diego County. It has 11 branches and 75,000 members.
Steve O’Connell, currently North Island CU’s CEO, will become CEO of the combined organization on the effective date of the merger. Executive management from both credit unions will make up the senior team of the new organization, the two credit unions said.
California Credit Union CEO Ron McDaniel will retire, a move that previously had been scheduled for 2017. All current California Credit Union and North Island CU board members will serve on the combined credit union’s board of directors and supervisory committee.
The $2.8 billion organization, which will serve 165,000 members with 24 branches across Los Angeles and San Diego counties, will take on the California Credit Union name and charter as the continuing credit union. Credit union operations in San Diego County will retain the North Island name, operating as a division of California Credit Union.
The two credit unions characterized their partnership as a “merger of equals,” which they said combines two “independently strong, successful credit unions with similar asset sizes, shared California roots, and complementary branch networks to bring greater value to their collective members, employees and communities.”
“Joining forces expands both credit unions’ California footprint, brings measureable economies of scale, and provides long-term growth opportunities,” the two CUs said in a statement. “In addition, North Island’s community marketing and product expertise is a strong complement to California Credit Union’s focus on the education market, providing new growth opportunities in two of the state’s largest markets.”
“California Credit Union has been actively considering partnerships to strategically expand and diversify to best serve our members and educational community,” said Walton Greene, PsyD, California Credit Union’s board chair. “Our two executive teams have had close working relationships for a number of years, and we both realized that our credit unions were a great cultural, financial, operational and strategic fit. There is no question that the economy of scale advantages and expertise of our combined organization will enable us to bring much more long-term value to members.”
Greene said the timing made sense, as McDaniel had scheduled his retirement for this year. “The product and service expertise of our credit unions complement each other well, and we look forward to expanding our full suite of products and services tailored to the education market to the San Diego community. We also want to express our appreciation to Ron, who has done an outstanding job as CEO for the past 13 years and played an instrumental role in our continued growth and positive performance.”
Gene Pellerin, chair of the board of North Island Credit Union, added, “Our board of directors and executive team are continually looking for new ways to enhance member benefits, better serve the San Diego community, and ensure we continue to thrive well into the future. Joining forces with California Credit Union will immediately expand our geographic presence and allow both credit unions to realize the significant efficiencies of a larger organization. Together, we will have the resources to make the right long-term infrastructure and technology investments, deliver more for our members, and become vastly more competitive with significant growth opportunities. With our shared Southern California roots, values and a commitment to serve our local communities, we will be able to offer the best possible service, products, pricing and convenience to our collective members. We have great respect for the California Credit Union board, leadership and staff, and look forward to combining the best of each organization’s strengths to grow and bring all our members an extraordinary banking experience.”
