Ventura County Credit Union and LA Financial CU call off merger

Register now

LA Financial Credit Union in Pasadena, Calif., will no longer merge into Ventura County Credit Union.

The credit unions said in a press release on Friday that the deal was called off “after many discussions and much due diligence.”

“Both credit unions are financially strong and stable with their current structures — and driven by a goal of doing what is best for their respective members, employees and communities, the two financial institutions decided it would be best to remain separate entities,” the press release said. “The talks ended amicably, with both parties confident in their mutual decision not to proceed with the merger.”

The transaction was announced in August and would have created a $1.3 billion-asset institution serving approximately 120,000 members in California and Arizona.

“As we put this mission into action, sometimes it makes sense to combine our strengths and assets, and other times we find it’s best to continue operating independently,” Joe Schroeder, president and CEO of Ventura County CU, said in the press release. “Although our merger discussions did not lead to a combined credit union, we wish LAFCU tremendous success.”

The two credit unions said all of their respective branches would remain open.

The $888 million-asset Ventura County Credit Union was chartered in 1950. Today, it is the largest credit union headquartered in Ventura County, with eight offices and more than 80,000 members.

In its most recent call report, VCCU earned about $5.4 million the first six months of this year, up 18.3% from the first half of 2018. As of June 30, it was well capitalized with a net worth ratio of 9.65%.

The $416 million-asset LA Financial Credit Union was founded in 1937 and has 29,000 members. It can serve anyone who lives, works or attends school in Los Angeles County. The institution also serves Lake Havasu City, Ariz., through its division, Havasu Community Credit Union.

In LAFCU’s most recent call report, it earned $1.1 million for the first half of 2019, down 67.5% from the same period last year. As of June 30, it was well capitalized with a net worth ratio of 9.2%.

For reprint and licensing requests for this article, click here.
M&A Consolidations California Arizona
MORE FROM AMERICAN BANKER