California, Michigan mergers completed on same day.
In California, the $364 million First City Credit Union of Los Angeles finalized the merger of the $91 million Focus One Community CU of Monrovia.
And in suburban Detroit, the $434 million Community Choice of Farmington Hills completed the merger of the ailing $4 million Kelly FCU of Troy following NCUA and Michigan regulatory approval.
Regarding the First City deal, the Los Angeles CU said in a formal statement that the consolidation would create a CU with 55,000 members, 9 branches and 17 proprietary ATMs throughout Los Angeles County.
The surviving CU, retaining the First City name, "will have reserves stand at over 11%, a measurement of strength that is above national averages significantly above regulatory requirements."
First City President Terry O'Steen will continue as CEO of combined CU headquartered downtown Los Angeles.
Both credit unions were founded in the 1930s to serve Los Angeles County employees. Focus serves Los Angeles County/USC Medical Center. First City serves the LA County Sheriff's Department, the Department of Children and Family Services, Department of Public Social Services, and several other county departments. Both credit unions, said a release, also serve other companies and organizations, and are open to communities throughout the area.
As two L.A. County employee credit unions, we are well matched in terms of values and cultures," said O'Steen. "The folks at Focus One called this a perfect fit,' and we feel the same." First City said it expects will "take a few months to complete the conversion of the Focus One data processing system to First City's."
In Michigan, Community Choice said it had been approached earlier this year from the board and management of the ailing Kelly FCU about a consolidation based on need to broaden its product service base. Kelly has been serving a member base for Kelly Services, the temporary help agency. It sought out a merger partner after the sponsor firm began dispersing some of its operations out of its suburban Detroit site, officials said.
It's a win-win for us and we believe it will be an advantage the members of Kelly," said Robert Bava, president/CEO of Community Choice. Community Choice, chartered in 1935 with eight branches, serves members in Genesee, Lapeer, Livingston, Macomb, Oakland, Clair, Washtenaw and Wayne Counties.
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|Title Annotation:||MERGER NEWS|
|Publication:||Credit Union Times|
|Date:||Oct 13, 2010|
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